Economic History: Population Aging and the Welfare State

This course deals with current issues relating to aging societies. An increasing share of elderly has for a long time characterized Sweden and other developed countries.

The course deals with questions like:

• If this did not constitute a challenge before, why is it the case today?
• Is the welfare state, as we today know it compatible with an aging society?
• How can we finance the welfare of an increasing share of elderly, with a steadily declining work force? Can this be done through increased immigration?
• What consequences does an aging society have for labour supply, savings, investments, and economic growth?

Following topics are discussed during the course:

• the historical origins of welfare systems, in Sweden and elsewhere
• historical fertility, mortality and migration patterns, linking short and long-term population changes to economic growth
• a range of potential solutions to how welfare systems can be financed during coming decades, through savings, increased labour force participation, productivity increases, and taxes

The student is also provided with a thorough review of key theoretical as well as empirical literature in the field.