This paper studies the effect of population ageing on the inter- and intra-generational redistribution of income from a longitudinal
perspective, comparing lifetime measures of income and transfers by generation, gender, education and family characteristics.
For this end, we incorporate new disaggregated National Transfer Account (NTA) data and concepts of generational accounting
into the dynamic microsimulation model microWELT. This bottom-up modelling strategy makes it possible to project, for each
generation and socio-demographic group, the net present value of expected transfers. microWELT delivers detailed sociodemographic
projections consistent with Eurostat population projections but additionally providing the required detail concerning the
changes in the population composition by education and family characteristics. Also, the model allows incorporating mechanisms
to balance budgets over time in response to population ageing. Our study compares the results for Spain and Austria. We find
significant differences in the role of private and public transfers related to parenthood. While in both countries parents
privately transfer substantially more money to others, the Austrian welfare state fully compensates for these differences
through public transfers to parents. Such compensation is not observed in Spain.
JEL-Codes:E01, J11, P51, O57, C53
Keywords:Microsimulation, Education, Demographic Change, National Transfer Accounts
Forschungsbereich:Arbeitsmarkt, Einkommen und soziale Sicherheit