MEDICARE FROM THE PERSPECTIVE OF GENERATIONAL ACCOUNTING: Baseline U.S. Generational Accounts 2

ddd
The female generational accounts share the same general age-pattem as do the male accounts, but the size of the accounts are smaller for females than for males. Female newborns face a $51,900 lifetime net tax bill compare with $77,400 for male newborns. And female 70 year-olds can look forward to receiving $101,000 over the remainder of their lives from the fiscal system, compared to $89,200 for 70 year-old males. The lower accounts for newborn females than for newborn males reflects females projected lower labor earnings and lower tax payments over their workspans. The larger net transfers owed to 70-year-old females compared to 70-year-old males reflects the longer expected lifespans of females.

The accounts for future males also exceed those for future females in accordance with our assumption used in the calculations that the ratio of female to male accounts for future generations equal the ratio prevailing for newborns. Future males can anticipate receiving a $134,600 growth-adjusted lifetime net tax bill upon their arrival on earth. For future females the bill is $90,200. Again, the growth adjustment refers to the assumption that each generation bom in the future makes a 1.2 percent higher absolute lifetime net tax payment than does the generation coming before it, where 1.2 percent is the assumed rate of labor productivity growth. other