The Euro Periphery: Aging and Costly

Examining Aging and Employment in the Eurozone

There’s a well-known saying, often linked to Paul Krugman, that describes the United States as “a massive retirement program supported by a military.” If this holds true for America, it’s even more applicable to the Eurozone—though with a much smaller military presence. In this analysis, I explore how labor force participation among individuals aged 55 to 64 varies across G10 countries, and how these figures relate to life expectancy at age 60.

The core issue facing many countries on the edge of the Eurozone is that a relatively small proportion of people in the 55–64 age group remain employed, despite these nations enjoying some of the highest life expectancies. As demographic trends persist, this imbalance is likely to become even more pronounced.