The Elderly Bias of the Spanish Welfare State (1958–2012)

The Spanish welfare state is strongly biased toward sustaining the elderly’s welfare, rather than children’s. We study the evolution of that bias since 1958 through National Transfer Accounts (NTA). NTA disentangle how people produce, consume, and save along their life cycle, and how resources move among generations through different mechanisms (families, markets, and governments). We extend the available NTA (2000–2012) to the past and show that Spanish social policies were biased toward the elderly since their early stages. The gradual increase in social expenditure and the aging of Spanish society have turned such bias into a serious challenge for the economy.