Income mobility and deprivation dynamics among the elderly in Belgium and the Netherlands

Abstract

This paper analyzes the dynamics of income and deprivation among the elderly in Belgium and the Netherlands between 1985 and 1988. It appears that, in 1985, the average level of deprivation in Belgium and the Netherlands was about the same. However, Belgium saw an increase between 1985 and 1988, while deprivation remained at a stable level in the Netherlands. In both countries, the difference in deprivation between the non-elderly and the elderly increased. However, while the elderly in the Netherlands were worse off than the non-elderly in 1988, the opposite situation was found in Belgium. At the level of individuals, the analysis of deprivation dynamics indicated that the majority of the elderly as well as the non-elderly population experienced substantial changes in deprivation status. Overall, living conditions turned out to be more stable in the Netherlands than in Belgium and, among the Dutch, more stable among the elderly than among the non-elderly. The income position of the elderly appeared to be comparable between the two countries. Regarding income mobility, income loss and, consequently, inflow into poverty were more likely among those retiring early than among those not retiring early. However, from an analysis of the relationship between income mobility and deprivation dynamics, it appeared that the living conditions of the elderly were not directly affected by changes in income. One explanation for this result may be ability to draw on savings to avoid deprivation, at least for some time.incomes;incomes policy;early retirement