The analysis of such inward transfers has given rise to an extensive research literature. A basic lesson is that temporary windfall income should be treated differently to permanent income, due to the welfare gains from smoothing consumption and the long-term impact of temporary spending surges that may permanently damage the productivity of the tradable sector. (The latter phenomenon is known as the “Dutch Disease”.)
Successfully settling into place the soon to be implemented retirement age extension and the peak wage system are other tasks that we cannot neglect. We must gather our wisdom, so as to harness effectively the experience and wisdom of our senior staff members, and to ensure that the peak wage system makes a real contribution to increasing youth employment.