OECD Economics Department Working Papers

Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

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Coping with Population Ageing in Hungary

This paper examines economic challenges posed by the combination of an ageing and declining population in Hungary and develops policy-oriented recommendations for addressing them. The authors identify the scale and specific properties of the demographic problem in Hungary where the population started to decline earlier than in any other OECD country. Public support for the elderly is provided by the social-security pension system and the healthcare system. While the former was reformed with partial success in the late 1990s, the latter developed less successfully, threatening to generate massive deficits in the long run. Projections indicate that even the public pension system may become unsustainable, unless the authorities restore the parameters of the original reform and encourage successfully higher labour force participation. In this context, measures to improve employability of the numerically strong and growing Roma minority are particularly pertinent. The healthcare sector ...


Keywords: Hungary, population ageing, health care, long-term projections, pensions
JEL: J1: Labor and Demographic Economics / Demographic Economics; I1: Health, Education, and Welfare / Health; J26: Labor and Demographic Economics / Demand and Supply of Labor / Retirement; Retirement Policies; I3: Health, Education, and Welfare / Welfare, Well-Being, and Poverty
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