The impact of social features on the financial sustainability of pension systems in Central and Eastern Europe and Baltic States

This paper analyses the financial sustainability of pension systems from the perspectives of labour supply, population aging, and demographic changes. The time period chosen was 1995 to 2022 and it takes into account nine countries from Central and Eastern Europe and the Baltic States. The economet...

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Main Authors: Florin Cornel Dumiter, Klaus Bruno Schebesch, Ștefania Amalia Nicoară, Cristian Bențe
Format: Article
Language:English
Published: Vilnius Gediminas Technical University 2024-12-01
Series:Technological and Economic Development of Economy
Subjects:
Online Access:https://mla.vgtu.lt/index.php/TEDE/article/view/22835
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author Florin Cornel Dumiter
Klaus Bruno Schebesch
Ștefania Amalia Nicoară
Cristian Bențe
author_facet Florin Cornel Dumiter
Klaus Bruno Schebesch
Ștefania Amalia Nicoară
Cristian Bențe
author_sort Florin Cornel Dumiter
collection DOAJ
description This paper analyses the financial sustainability of pension systems from the perspectives of labour supply, population aging, and demographic changes. The time period chosen was 1995 to 2022 and it takes into account nine countries from Central and Eastern Europe and the Baltic States. The econometric modelling techniques used are traditional linear regression, ridge and lasso regression, cross-validated glmnet models, and xboost flexible model used for the whole nine countries and also for country groups. The empirical results show that government expenditures and revenues in terms of social security funds are influenced by the demographic changes of the population that we face nowadays, are bound to the population aging phenomenon, and are dependent upon the elderly labour supply movements. The conclusions of this article reveal the practical need to reshape the financial sustainability of pension systems in all nine countries by developing a sustainable pension scheme that needs to be adjusted to the new social, demographic, and behavioural patterns of labour supply.
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publisher Vilnius Gediminas Technical University
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series Technological and Economic Development of Economy
spelling doaj-art-e07a02bf2bf444e7bcc9eabb492707692025-08-20T01:58:42ZengVilnius Gediminas Technical UniversityTechnological and Economic Development of Economy2029-49132029-49212024-12-0130610.3846/tede.2024.22835The impact of social features on the financial sustainability of pension systems in Central and Eastern Europe and Baltic StatesFlorin Cornel Dumiter0Klaus Bruno Schebesch1Ștefania Amalia Nicoară2Cristian Bențe3Faculty of Economics, IT and Engineering, “Vasile Goldiș” Western University of Arad, Arad, RomaniaFaculty of Economics, IT and Engineering, “Vasile Goldiș” Western University of Arad, Arad, RomaniaFaculty of Economics, IT and Engineering, “Vasile Goldiș” Western University of Arad, Arad, RomaniaFaculty of Social Sciences, Humanities and Physical Education and Sport, “Vasile Goldiș” Western University of Arad, Arad, Romania This paper analyses the financial sustainability of pension systems from the perspectives of labour supply, population aging, and demographic changes. The time period chosen was 1995 to 2022 and it takes into account nine countries from Central and Eastern Europe and the Baltic States. The econometric modelling techniques used are traditional linear regression, ridge and lasso regression, cross-validated glmnet models, and xboost flexible model used for the whole nine countries and also for country groups. The empirical results show that government expenditures and revenues in terms of social security funds are influenced by the demographic changes of the population that we face nowadays, are bound to the population aging phenomenon, and are dependent upon the elderly labour supply movements. The conclusions of this article reveal the practical need to reshape the financial sustainability of pension systems in all nine countries by developing a sustainable pension scheme that needs to be adjusted to the new social, demographic, and behavioural patterns of labour supply. https://mla.vgtu.lt/index.php/TEDE/article/view/22835pension systemslabour supplyelderly peoplefinancial sustainabilityaging society
spellingShingle Florin Cornel Dumiter
Klaus Bruno Schebesch
Ștefania Amalia Nicoară
Cristian Bențe
The impact of social features on the financial sustainability of pension systems in Central and Eastern Europe and Baltic States
Technological and Economic Development of Economy
pension systems
labour supply
elderly people
financial sustainability
aging society
title The impact of social features on the financial sustainability of pension systems in Central and Eastern Europe and Baltic States
title_full The impact of social features on the financial sustainability of pension systems in Central and Eastern Europe and Baltic States
title_fullStr The impact of social features on the financial sustainability of pension systems in Central and Eastern Europe and Baltic States
title_full_unstemmed The impact of social features on the financial sustainability of pension systems in Central and Eastern Europe and Baltic States
title_short The impact of social features on the financial sustainability of pension systems in Central and Eastern Europe and Baltic States
title_sort impact of social features on the financial sustainability of pension systems in central and eastern europe and baltic states
topic pension systems
labour supply
elderly people
financial sustainability
aging society
url https://mla.vgtu.lt/index.php/TEDE/article/view/22835
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