nep-age New Economics Papers
on Economics of Ageing
Issue of 2009‒08‒30
two papers chosen by
Claudia Villosio
LABORatorio R. Revelli

  1. Veto Power and Wealth: Analysis of the Development of the Swiss Old Age Security By Zenker, Christina G.
  2. Smart places, getting smarter: facts about the young professional population in New England states By Heather Brome

  1. By: Zenker, Christina G.
    Abstract: Switzerland was one of the last OECD-countries to introduce a program for old age security – the AHV. For many decades, expenditures both in absolute terms and as a portion of GDP remained low in OECD comparison. In the 1970ies however, expenditures exploded – within 10 years, the expenditures as a percentage of GDP doubled. This article explains this astonishing development by applying the veto player theory. Veto player theory is useful to determine changes in the policy stability. The higher the policy stability, the more difficult it is to move away from the political status quo. The lower the policy stability, the more probable it is that reforms and changes in government programs can be achieved. This article shows that the policy stability was particularly high in the constitution phase (from 1890 to 1947) and the consolidation phase (from 1974 to the present) and low in the phase in between (from 1948 to 1973), when the foundation for the expansion was set.
    Keywords: Veto player theory; Political Institutions; Direct Democracy; Social Spending
    JEL: H55 D02 D72
    Date: 2009–08
  2. By: Heather Brome
    Abstract: Each of the New England states is wrestling with how to retain a skilled workforce and sustain economic competitiveness while facing an aging population. In particular, each state fears that it is losing young, educated workers to other states and regions. This paper builds on earlier research about trends in the region’s young professionals: it looks at the supply of young professionals in each state to better understand trends in that population. The analysis reveals that, while there are some differences between the New England states, all are facing slow growth or no growth in its population of young professionals.
    Keywords: College graduates - New England ; Migration, Internal ; Labor mobility
    Date: 2009

This nep-age issue is ©2009 by Claudia Villosio. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.