National Transfer Accounts:

DATA SHEET 2011

The National Transfer Accounts (NTA) project is developing a system to measure labor
income and consumption by age as well as economic flows across age groups in a manner
consistent with National Income and Product Accounts. NTA measures how each age group
produces, consumes, shares, and saves resources. Two forms of economic flow are
distinguishedtransfers between age groups and asset-based flows. These flows occur
through financial markets, government programs, and families and other private institutions.
The NTA project consists of research teams working in universities, international
organizations, and private and government research institutes in more than 30 countries
around the world. Project coordinators are Ronald D. Lee with the Center for the
Economics and Demography of Aging, University of California at Berkeley, and Andrew
Mason with the Department of Economics, University of Hawaii at Manoa, and the
Population and Health Studies Program, East-West Center.
Regional centers are based at Nihon University Population Research Institute in
Japan, the United Nations Economic Commission for Latin America and the Caribbean in
Chile, the African Economic Research Consortium in Kenya, and the Institute for Futures
Studies in Sweden.
Support for the project has been provided by the US National Institute on Aging,
the John D. and Catherine T. MacArthur Foundation, the International Development
Research Centre of Canada (IDRC), the United Nations Population Fund (UNFPA), the
European Science Foundation, and the Academic Frontier Project for Private Universities
via a grant to the Nihon University Population Research Institute.

This data sheet was published in 2011 by the

National Transfer Accounts Project
Population and Health Studies, East-West Center
1601 East-West Road, Honolulu, HI 96848-1601, USA
Telephone: +1.808.944.7566 | Fax: +1.808.944.7490
Email: contact@ntaccounts.org | Website: www.ntaccounts.org

Aggregate labor income and consumption by age in

India (2004) and Germany (2003)

India

Germany

In countries at widely different stages of economic development, such

as India and Germany, consumption exceeds labor income for two long
periods of life. These bracket a surprisingly short periodlittle more than
30 yearsduring which more is being produced than consumed. The
lifecycle deficit, defined as consumption in excess of labor income, is
particularly high for the young in India and for the old in Germany. This is not
because individuals in these groups have such high consumption relative
to other age groups, but rather because these age groups are so large. In
high-income countries such as Germany, labor income is concentrated in
a narrower span of life than in low-income countries such as India, and
consumption rises more steeply with age.
3

Changing population age structures

The NTA approach, which looks at economic indicators through the lens of age,
is particularly critical today because population age structures are changing
more quickly than in the past. Age structures are changing primarily because
people are having fewer children and, to a lesser extent, because they are living
longer.
In roughly half the countries of the worldconcentrated in Africa, Latin
America, and South Asiathe working-age population is growing faster than
other age groups. This creates an age structure highly favorable for economic
growth. For these countries, it will be valuable to invest this demographic
dividend in capital formation and in the education and health of young people,
who will be tomorrows workers. The other half of the worldliving in the
countries of Europe, North America, and East Asiahas completed this phase
of the demographic transition. Increasingly, these populations will consist of
very few children, not many workers, and many old people.

Economic lifecycle
In all modern societies, children and the elderly consume more resources than
they produce through their own labor, while working-age adults produce more
than they consume. What makes this economic lifecycle possible is the flow
of resources over time and across generations through a complex of social,
economic, and political institutions. NTA quantifies the economic lifecycle
using estimates of consumption and labor income by single years of age.
The six columns on the first page of the table compare per capita consumption
by young people (age 024) and the elderly (age 65+) with consumption by adults
(age 2564). Two types of consumption are distinguishedprivate consumption
and public consumption, which includes government-provided education and
healthcare. In general, private consumption is considerably lower for young
people than for working-age adults, while private consumption by the elderly
is similar or higher. Public consumption is generally higher for both children
and the elderly than for working-age adults.

Support ratios
The support ratio, shown on the second page of the table, is an important
indicator of population age structure that measures the effective number of
producers relative to the effective number of consumers. The effective number
of producers incorporates age differences in labor-force participation,
unemployment, hours worked, and wages. The effective number of consumers
allows for age differences in consumption due to taste, physiological needs,
and other factors.
In the course of economic development, the support ratio undergoes large
swings. In the early stages of development, the support ratio can reach very low
levels because there are so many children. Nigeria, for example, had only 69
effective producers in 2010 for every 100 effective consumers. This ratio is
projected to increase to 93 producers per 100 consumers in 2050, with
favorable benefits for the economy. The support ratio is rising throughout
Africa and, for the present, in many Asian and Latin American countries.

Eventually, as large groups of workers reach retirement age, the support

ratio will go down again. South Korea, for example, had 94 producers for every
100 consumers in 2010, projected to decrease to 71 in 2050. In East Asia,
Europe, and the United States the support ratio is projected to decline for the
foreseeable future
The fiscal support ratio, also shown on the second page of the table,
measures how changes in population age structure will influence government
budgets if current age-profiles of taxes and benefits remain constant. Projected
values are expressed as a percentage of the ratio in 2010. The fiscal support
ratio is projected to rise in Indonesia, the Philippines, and Thailand during the
next two decades, meaning that tax revenues will increase relative to the cost
of benefits provided by governments, but in all other countries for which
estimates are available, the fiscal support ratio will decline, putting pressure
on government budgets.

The trade-off between fertility and human-capital spending

Note: See tables for abbreviations of country names.

Increasing human capital spending is a promising strategy to offset the
anticipated decline in the support ratio. Indeed, countries with low fertility
tend to spend more on the health and education of each child than do
countries with high fertility. As a result, future generations of workers should
be more productive even if there are fewer of them. For example, humancapital spending on each child in low-fertility European countries is about
four times the average annual labor income of a prime-age adult (3049),
while in high-fertility African countries human-capital spending on each child
is only about twice the average annual labor income of this age group.

Economic resources for children and the elderly

Children and the elderly can rely on economic resources from four sources to
support their consumptionlabor income, public transfers, private transfers,
and asset-based flows. Children have relatively low labor income everywhere.
Even if they are working, their wages are low compared with those of primeage adults. They also have little or no income from assets. In a few advanced
countries, young adults may rely on credit (students loans or credit card
debt, for example), but this is the exception rather than the rule. Rather,
children rely extensively on private transfers from parents and grandparents
with whom they live. In some higher-income countries, public transfers also
fund a large share of consumption by children, particularly in Europe where
the public sector dominates the education and healthcare sectors.
The elderly rely on a more diverse set of economic resources to support
themselves. In some low-income countries, labor income is an important
economic resource. Among the industrialized countries, labor income varies
in its importancelow in most European countries and higher in the United
States and Japan.

Note: See tables for abbreviations of country names.

How do the elderly make up the difference between what they consume
and what they earn? The triangle chart compares the relative importance
of three sources of incomepublic transfers, private transfers, and assets.
The importance of each component is represented by the distance from
the points on the triangle. The elderly in Sweden and Hungary, for example,
rely almost exclusively on public transfers. The elderly in Mexico and the
Philippines rely heavily on assets. Private transfers are important in a few
Asian economiesThailand, Taiwan, and South Korea, for example, but not
Japan. In many countries, net private transfers are close to zero, and in quite
a fewthose lying to the right of the trianglethe elderly actually give more
to their children and grandchildren than they receive.

National Transfer Accounts: Selected Variables

Per Capita Consumption by Children and the Elderly
Private
Public
Combined
(% of per capita
(% of per capita
private consumption public consumption
age 2564)
age 2564)

Age
024

(% of per capita
combined consumption
age 2564)

Age
65+

Age
024

Age
65+

Age
024

Age
65+

57
57
57

99
90
108

135
169
102

94
90
98

64
69
60

99
90
1 08

2002
2004
2000
1998

76
73
67
79
87

95
98
1 08
85
88

1 53
1 24
1 94
1 58
1 38

1 46
1 03
229
1 25
1 27

91
85
90
93
98

1 05
99
1 30
92
97

South & Southeast Asia

India (IN) 2004
Indonesia (ID) 2005
Philippines (PH) 1999
Thailand (TH) 2004

66
63
69
66
64

96
1 03
82
1 05
96

1 69
1 25
1 89
1 50
210

12 1
1 41
1 20
1 09
114

77
71
78
76
82

99
1 07
85
1 05
98

Latin America
Brazil (BR)
Chile (CL)
Costa Rica (CR)
Mexico (MX)
Uruguay (UY)

1996
1997
2004
2004
2006

61
59
61
58
59
67

1 02
1 26
98
97
88
1 02

1 56
1 27
1 74
1 42
1 74
1 63

1 34
1 33
141
153
129
1 15

73
72
73
70
70
80

1 06
1 27
1 02
1 05
92
1 04

Europe & US
Austria (AT)
Finland (FI)
Germany (DE)
Hungary (HU)
Slovenia (SI)
Spain (ES)
Sweden (SE)
United States (US)

2000
2004
2003
2005
2004
2000
2003
2003

59
58
56
58
52
70
69
57
54

93
89
89
1 04
94
89
88
83
1 09

177
172
1 64
1 38
151
223
1 87
214
1 67

193
173
1 63
160
1 45
21 1
17 1
291
233

86
82
84
76
80
1 03
90
99
73

116
1 07
1 08
116
108
116
1 03
139
1 30

Africa
Kenya (KE) 1994
Nigeria (NG) 2004
East Asia
China (CN)
Japan (JP)
South Korea (KR)
Taiwan (TW)

Sources: Ronald Lee and Andrew Mason, lead authors and editors. 2011. Population Aging and the
Generational Economy: A Global Perspective. Cheltenham, UK: Edward Elgar; and NTA database,
www.ntaccounts.org.

National Transfer Accounts: Selected Variables

Support Ratios

Fiscal Support Ratios

(effective number
of producers per
100 effective consumers) a

(projected tax revenues

relative to public transfers
as % of values in 2010) b

2010
Africa

2030

2050

2030

2050
u
90
u
1 08
u

5
66
57
63
57
69

75
90
71
108
79

86
169
79
102
93

90
98

u
69
u
60
u

2002
2004
2000
1998

7
90
73
94
767
8
79
94
87
92

81
98
87
1 08
71
85
84
88
82

70
1 24
80 1 03
1 94
60 229
1 587 1 1 25
1 38
67 1 27

89
85
87
90
87
93
89
98
92

78
99
80
1 30
74
92
80
797
9

South & Southeast Asia

India (IN) 2004
Indonesia (ID) 2005
Philippines (PH) 1999
Thailand (TH) 2004

96 1
63
88
69
97
66
83
64
97

95
1 03
96
182
03
1 05
91
96
90

94
1 25
96 1 4 1
1 89
99 1 20
1 50
94 1 09
210
85 1 1 4

1 08
71
u
78
110
1 1 76
1
82
1 04

1 09
1 07
u
85
1 08
1 05
16
98
1 04

Latin America
Brazil (BR)
Chile (CL)
Costa Rica (CR)
Mexico (MX)
Uruguay (UY)

1996
1997
2004
2004
2006

6
90
59
84
61
94
58
93
59
95
67
85

92
1 26
87
98
91
97
95
188
00
1 02
87

86
1 27
78
1 74
85
1 42
87
1 7 94
4
1 63
85

1 33
141
153
129
1 15

91
72
86
73
83
9 70
1
70
99
80
98

79
1 69
27
1 02
72
1 05
76
92
86
1 90
04

Europe & US
Austria (AT)
Finland (FI)
Germany (DE)
Hungary (HU)
Slovenia (SI)
Spain (ES)
Sweden (SE)
United States (US)

2000
2004
2003
2005
2004
2000
2003
2003

5
84
58
90
56
82
58
83
52
86
770
6
69
90
757
8
54
89

75
89
77
89
73
1 04
70
94
82
89
64
88
79
83
72
1 09
82

69
172
70 1 7 3
1 647 1 1 63
1 38
63 160
1 5 71 3 1 45
223
56 2 1 1
1 87
67 17 1
214
69 291
1 678 1 233

87
82
83
84
87
76
84
80
93
1 03
8
1
90
87
99
90
73
92

79
1 07
74
1 08
83
1 175
6
108
77
1 172
6
1 03
73
13
9
86
1 30
89

Kenya (KE) 1994

Nigeria (NG) 2004
East Asia
China (CN)
Japan (JP)
South Korea (KR)
Taiwan (TW)

u Unavailable.
a The effective number of producers sums the population in each one-year age group, weighted to incorporate
age differences in employment and productivity estimated for the base year. The effective number of
consumers sums the population in each one-year age group, weighted to incorporate age differences in
consumption estimated for the base year.
b Revenues and expenditures are projected assuming that per capita taxes and public expenditures by
single year of age remain constant at base-year values. Thus, values for 2030 and 2050 are the result of
changes in population age structure. Values less than 100% indicate a decline in tax revenues relative to
expenditures. Only cash and in-kind public transfer programs are included.

National Transfer Accounts: Selected Variables

Human-Capital Spending

Annual Economic Reso

for Children, Age 0

(% of average annual
labor income of a
prime-age (3049) adult) c

Private
Africa

Public

(as % of annual consumpt

Labor Private
Public
Income Transfers Transfers

5 1 14
57 37 90
571 9 1 108

58
96169
2 1102

11
90
17
98 5

u
69u
60u

u
90 u
1 08 u

2002
2004
2000
1998

7 1 43
73 26 98
671 40 1 08
791 00 85
87307 88

247
1 851 24
3891 94
2021 58
2 1 31 38

22
1 03
32
229
14
1 25
23
1 27
18

58
85u
90
50
93
66
98
57

23
991 3
1 3033
922 1
9724

South & Southeast Asia

India (IN) 2004
Indonesia (ID) 2005
Philippines (PH) 1999
Thailand (TH) 2004

6 91
63 78 1 03
69 84 82
661 24 1 05
64 80 96

151
1 051 25
1 371 89
1 1 11 50
25 12 1 0

21
1 420
1
1 20
23
1 09
18
1 1 23
4

63
7 1u
78
63
76
69
82
58

15
1 07 u
851 1
1 051 3
982 1

Latin America
Brazil (BR)
Chile (CL)
Costa Rica (CR)
Mexico (MX)
Uruguay (UY)

1996
1997
2004
2004
2006

6 1 20
591 58 1 26
611 04 98
58 72 97
591 00 88
671 65 1 02

206
1 921 27
1 941 7 4
2521 42
2321 7 4
1 601 63

19
1 33
15
1 4 11 7
153
22
129
18
1 1 23
5

65
72
70
73
64
70
62
70
61
80
69

14
1 271 2
1 021 5
1 051 6
921 5
1 041 4

Europe & US
Austria (AT)
Finland (FI)
Germany (DE)
Hungary (HU)
Slovenia (SI)
Spain (ES)
Sweden (SE)
United States (US)

2000
2004
2003
2005
2004
2000
2003
2003

5 45
58 28 89
56 1 8 89
58 37 1 04
52 33 94
70 50 89
69 6 1 88
57 20 83
541 1 1 1 09

3 77
3591 7 2
3441 64
29 11 38
36 11 5 1
476223
3361 87
56 12 1 4
2891 67

20
1 7 36
3
1 63
17
160
19
1 45
13
2 1 11 7
1 720
1
291
19
233
15

45
82
35
84u
76
49
80
32
1 03
52
90
55
99
46
73
48

33
1 07
28
1 08
40
116
30
108
48
116
30
1 03
26
139
30
1 30
34

Kenya (KE) 1994

Nigeria (NG) 2004
East Asia
China (CN)
Japan (JP)
South Korea (KR)
Taiwan (TW)

c Human capital spending is total spending per child given per capita health spending from age 0 to 17 and
per capita education spending from age 0 to 24 in the base year.

National Transfer Accounts: Selected Variables

Annual Economic Resources
for Children, Age 024

Annua
for

(as % of annual consumption) d

(as %

Labor Private
Public
Asset-Based
Income Transfers Transfers Reallocations
Africa

151
157
7
57
5

u
90
u
108
u

u
169u
102u

2002
2004
2000
1998

7
22
73
32
167
4
79
23
187
8

58
98
u
1 08
50
85
66
88
57

23
1 24
13
1 94
33
1 58
21
1 38
24

2
1 03 u
229 3
1 25 1 0
1 27 1

South & Southeast Asia

India (IN) 2004
Indonesia (ID) 2005
Philippines (PH) 1999
Thailand (TH) 2004

261
63
20
69
23
166
8
64
23

63
1 03
u
82
63
1 05
69
96
58

15
1 25u
1 89
11
1 50
13
2 1201

1 41
1 20
1 09
114

1
u
3
0
1

Latin America
Brazil (BR)
Chile (CL)
Costa Rica (CR)
Mexico (MX)
Uruguay (UY)

1996
1997
2004
2004
2006

169
159
5
161
7
58
22
159
8
67
23

65
1 26
70
98
64
97
62
88
61
1 02
69

14
1 27
12
1 7145
1 42
16
1 7145
1 63
14

1 33
141
153
129
1 15

2
4
4
1
6
6

Europe & US
Austria (AT)
Finland (FI)
Germany (DE)
Hungary (HU)
Slovenia (SI)
Spain (ES)
Sweden (SE)
United States (US)

2000
2004
2003
2005
2004
2000
2003
2003

5
20
58
36
156
7
158
9
152
3
170
7
69
20
157
9
154
5

45
89
35
89
u
1 04
49
94
32
89
52
88
55
83
46
1 09
48

33
1 728
2
1 64
40
1 38
30
1 5418
223
30
1 87
26
2 130
4
1 67
34

Kenya (KE) 1994

Nigeria (NG) 2004
East Asia
China (CN)
Japan (JP)
South Korea (KR)
Taiwan (TW)

69
60

44
3290
1 08
56

85
90
93
98

20
3699
11230
2392
1 197

71
78
76
82

32
1 07
28
4485
1 05
39
1 798

72
73
70
70
80

22
11827
21 102
1 05
24
2692
1 04
22

2
1 7 3 1 82
1 63 u 84
160 3 76
1 45 6 80
2 1 1 1 1 03
1 7 1 1 90
291 4 99
233 3 73

6
1207
1408
131 6
108
6
141 6
1 703
1 73 9
11630

90
98

u
u
u

Labor Pri
Income Tran

u Unavailable.
d In some cases annual economic resources for children do not sum to 100% of their consumption due
to rounding. Regional averages do not necessarily sum to 100% because the information available for
some countries is incomplete.

10

National Transfer Accounts: Selected Variables

Annual Economic Resources
for the Elderly, Age 65+
(as % of annual consumption) e

Labor Private
Public
Asset-Based
Income Transfers Transfers Reallocations
Africa

5
44
57
32
57
56

u
90u
108u

u
169u
102u

2002
2004
2000
1998

7
20
73
36
167
2
79
23
187
1

18
98u
1 081
85
13
88
40

34
1 24u
1 94
51
1 58
28
1 38
24

South & Southeast Asia

India (IN) 2004
Indonesia (ID) 2005
Philippines (PH) 1999
Thailand (TH) 2004

6
32
63
28
69
44
66
39
164
7

2
1 03u
82
27
1 054
96
30

1
1 25u
1 891
1 50
1
2 103

Latin America
Brazil (BR)
Chile (CL)
Costa Rica (CR)
Mexico (MX)
Uruguay (UY)

1996
1997
2004
2004
2006

6
22
159
8
261
1
58
24
59
26
67
22

12
13
261
984
97
1
88
19
102
11

Europe & US
Austria (AT)
Finland (FI)
Germany (DE)
Hungary (HU)
Slovenia (SI)
Spain (ES)
Sweden (SE)
United States (US)

2000
2004
2003
2005
2004
2000
2003
2003

56
58
2
56
4
58
3
52
6
70
4
69
7
57
7
154
6

6
89
6
89u
1 04
7
94
2
893
88
12
83
10
1 09
7

Kenya (KE) 1994

Nigeria (NG) 2004
East Asia
China (CN)
Japan (JP)
South Korea (KR)
Taiwan (TW)

90
98

u
u
u

69
60

90
1 08

1 03
229
1 25
1 27

33
u
37
36
25

85
90
93
98

99
1 30
92
97

1 41
1 20
1 09
114

65
u
81
58
56

71
78
76
82

1 07
85
1 05
98

54
1 27
89
1 753
4
1 42
51
1 727
4
1 63
49

1 33
141
153
129
1 15

36
25
22
27
66
40

72
73
70
70
80

1 27
1 02
1 05
92
1 04

76
1 794
2
1 64
83
1 38
69
1 594
1
223
80
1 87
59
211041
1 67
32

173
1 63
160
1 45
21 1
17 1
291
233

24
9 82
u 84
3 5 76
2 80
14 1 03
46 90
1 99
59 73

1 07
1 08
116
108
116
1 03
139
1 30

u Unavailable.
e In some cases annual economic resources for the elderly do not sum to 100% of their consumption due to
rounding. Regional averages do not necessarily sum to 100% because the information available for some
countries is incomplete. Negative values for transfers indicate that the elderly are providing more
resources to other age groups than they are receiving.

11