Honey, I shrunk the kids' benefits-revisiting intergenerational conflict in OECD countries

Abstract

Intergenerational conflict may arise when the interests of different age groups do not align. We examine cross-country data to find evidence for this conflict in OECD countries. We derive our results from a FGLS estimation model, which is complemented by a System-GMM estimation to account for potential endogeneity. The data are from a panel of 22 OECD countries over the time period 1985-2005. We find little support for intergenerational conflict in general; however, those who are close to statutory retirement age dislike public expenditure on families and education because, once they retire, they will have less income compared to their work income. This effect is transitory, however, implying a change in voting behavior during retirement age. © 2013 Springer Science+Business Media New York.