On average, only older men really contribute to society

[Hamilcar]

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2375926

The Distribution of Income and Fiscal Incidence by Age and Gender: Some Evidence from New Zealand


Omar Aziz
Government of New Zealand - Treasury

Norman Gemmell
Victoria University of Wellington - Victoria Business School

Athene Laws
Victoria University of Wellington

April 30, 2013

Victoria University of Wellington Working Paper in Public Finance No. 10/2013

Abstract:     
This paper examines the age and gender dimensions of income distribution and fiscal incidence in New Zealand using Household Expenditure Survey (HES) data for 2010 and a non-behavioural micro-simulation model. Since many fiscal policies are likely to have quite different incidences across age groups and genders, and with population ageing changing the age and gender composition of the voting population in many countries, age/gender dimensions of fiscal incidence become increasingly relevant. While this single 'age distribution snapshot' cannot fully capture lifecycle incidences, it avoids the complex and uncertain assumptions implicit in the latter and is an important component of lifetime redistribution calculations. We explore alternative methods of intra-family allocation of resources including 'unequal share' assumptions based on recent research into how families allocate their spending. Our evidence, which in general is not highly sensitive to sharing assumptions, suggests a strong 'life cycle' aspect to fiscal incidence whereby net tax liabilities are low, and generally negative, at younger and older ages but positive during much of the 'working age' period. Women, on average, are found to have a systematically and persistently lower net fiscal liability than men, most pronounced at older ages when greater female longevity exercises a strong influence. Nevertheless, considerable heterogeneity of fiscal incidence for both men and women is observed with the distributions of various fiscal incidence measures showing substantial overlap.

Plot:

[crazy canuck]

You are welcome

[Jacob]

Alternate interpretation: older men have managed to arrange society such that they are the primary beneficiaries.

[Monoriu]

My first reaction is that, the "positive territory" is very small when compared with the "negative territory" of both sexes.  Females are completely negative during their entire lifespans.  Males have a negative area during their youth, and a seemingly slightly larger positive area when they are old.  My intuition is that the positive territories and the negative ones should cancel each other out but this does not seem to be the case. 

[Valmy]

Alternate interpretation: older men have managed to arrange society such that they are the primary beneficiaries.

I might agree with you if I understood what the hell Fiscal Impact was

[Ed Anger]

Of course.

[Monoriu]

Alternate interpretation: older men have managed to arrange society such that they are the primary beneficiaries.

I might agree with you if I understood what the hell Fiscal Impact was

My interpretation is the impact on government revenue.  The average amount that one person pays in taxes minus what the government spends on this person.  So one would expect negative numbers in the early years (education) and in the late years (health care), but positive numbers in a person's prime. 

[Admiral Yi]

I might agree with you if I understood what the hell Fiscal Impact was

I believe it means what an individual pays in taxes or receives in benefits.

[CountDeMoney]

"Income distribution and fiscal incidence in New Zealand using Household Expenditure Survey (HES) data"...?  Seriously?

[Tonitrus]

"Income distribution and fiscal incidence in New Zealand using Household Expenditure Survey (HES) data"...?  Seriously?

What is the impact of the sheep?

[CountDeMoney]

"Income distribution and fiscal incidence in New Zealand using Household Expenditure Survey (HES) data"...?  Seriously?

What is the impact of the sheep?

New Zealand, could be beer for all it matters.  Or shark victims.  Or Peter Jackson scenery porn.

[garbon]

Can we put Hami back in the storage bin and then light it on fire?

[Martinus]

I love that Hami posts a scientific article without any comment, and yet he gets attacked because the facts do not fit the narrative. 

[MadImmortalMan]

Positive impact in taxes? Society is not the government.

[Martinus]

Alternate interpretation: older men have managed to arrange society such that they are the primary beneficiaries.

So, your "alternate interpretation" is interpreting the results in the opposite to what they actually say? Hmmm. 

The results are a no-brainer. Men more frequently than women engage in taxable activities (as many women stay at home to take care of kids etc.) and live shorter on average than women, so they become less of a burden on social and health services in their old age. It doesn't mean that men are "more valuable", or "better" - it just describes a social and biological fact.