Government spending preferences over the life cycle

Abstract

AbstractDo seniors have different public spending preferences than younger people? The literature on this topic has been limited so far to a few policies or to short periods of time, which makes it difficult to provide a comprehensive answer to this question. Using data from Canadian surveys conducted between 1987 and 2019 and covering fifteen policies, this paper shows that seniors, as compared to younger adults, are slightly more favourable to the status quo when it comes to government spending. Results also show that support for education spending decreases extensively over the life cycle, while support for environment spending decreases until middle age, then stabilizes. In contrast, support for transportation spending is more widespread in older age, while support for elderly services takes an inverted U-shape over the life cycle. These findings broaden our understanding of the influence of age on government spending preferences and allow us to reflect on the consequences of a growing senior electorate on government budgets.