Introduction

Since the 1980s, in the United States there has been a debate as to the implications of demographic ageing for the nature and extent of the welfare state (see Kohli, 2005). This debate was triggered by the claim – raised by Preston (1984) and others – that, in a context of economic scarcity, older people consume a disproportionate share of public resources (on pensions, healthcare and care services), and that this is done at the expense of the younger generations. This, according to Turner (1989, p 591), will generate a ‘politics of resentment’ against older people.

While it has produced a vivid debate in the political and academic arenas, this claim has yet to be fully validated by empirical evidence. Some studies do seem to validate the idea of a ‘clash of generations’. Based on data from the International Social Survey Programme (ISSP), Smith (2000) argues that support for public spending on retirement benefits is higher in individuals aged over 65 – even if this does not apply to all countries surveyed. Based on data from Germany, Wilkoszewski (2009) argues that support for pension provision increases with age. In contrast, support for policies that involve transfers from the old to the young (such as lower taxes for parents, financial assistance to parents who give up their jobs or a substantial increase in child benefits) decreases with age.

However, other studies seem to question, if not contradict, these findings (see also Chapter Twelve). Based on data from a Eurobarometer survey (conducted in 2001), Kohl (2003) argues that the differences of opinion between age groups are well below the level that generational conflict advocates would suggest. Based on data from the Swedish Welfare State Surveys, Svalfors (2008) argues that although support for policies targeted at younger people (child benefits, childcare and so on) is lower in those aged between 65 and 74, support for policies targeted towards the elderly is high across all age groups.

As can be seen in the previous paragraphs, much of this debate has concentrated on the redistributive function of the welfare state (see also Chapter Two). However, the existing literature seems to neglect the possible impact of demographic ageing in an important function of modern welfare states: the regulation of the functioning of labour markets. This lack of attention is somewhat surprising.