By Tommy Bengtsson (auth.), Tommy Bengtsson (eds.)
This e-book is the 1st to take a finished view of the demanding situations that inhabitants growing old found in the close to destiny taking Sweden because the case. Can the expanding variety of retirees in step with employee be stopped by way of immigration or expanding fertility or do we have to elevate pension age as a substitute? rate for the social-care approach is instantly expanding; much more is the prices for health and wellbeing care. Can the galloping bills be funded by way of a rise in taxes or will we intend to make reforms, just like those already made within the pension approach, which has been used as a version for plenty of different nations. the truth that it's tricky to make well-being care depending on own contributions, as is the case of the pension process, investment of healthiness care is a real attempt of unity throughout generations. The booklet ends with a dialogue on even if the demographic problem to the welfare procedure is additionally a risk to the welfare country as such.
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Additional info for Population Ageing - A Threat to the Welfare State?: The Case of Sweden
Sample text
Stefan Jonsson and Michael Rendell (2004) came to the opposite conclusion under the assumption that immigrants retain home-country fertility levels instead. These results make it clear that the potential impact of immigration is dependent upon the assumptions made regarding post-migration fertility. As mentioned above, there is evidence that migrants that come to Sweden adjust to Swedish levels, leading to the conclusion that immigration will not result in the large shifts in age structure needed to reverse population ageing.
There may, however, be some room to increase revenues slightly by reintroducing a uniform tax on goods and services, thereby increasing the tax rate on food, newspapers and books, hotel accommodation, and public transportation to 25%. Reintroducing a higher tax rate on food in particular will generate additional revenues but may require compensation for low-income households to balance increased costs. Redistributing to low-income households using a lower VAT on food is not efficient. Income redistribution directly aimed at low-income households is more cost-effective.
This will likely not be enough however and alternative ways need to be sought and found in order to finance the increased demand from the elderly. 1 Introduction Sweden, like many other countries, faces a demographic challenge in that the share of the elderly to the working population is predicted to increase (see, Chap. 2). As the number of elderly grows so does the demand for resources (such as pensions, social and medical care) directed towards them. Today, the lion’s share of these expenditures is financed through the public budget by taxes.
