The generation gap is the different influence of the economic, political and social context, attending to each section of the population in terms of age.
On a day-to-day basis, it is possible to make an approximation to the concept of generation gap, approaching it from different aspects: culture, religion, art, politics, etc.
In that sense, the generation gap in economic terms is a studied reality. It encompasses the vision of the cohabiting generations on the economic and financial aspects of reality.
Effects such as inflation or the appearance of significant technological changes affect countries and their populations differently if we look at age.
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Therefore, it is common to understand that there is a differentiation or gap between different generations. Taking into account their living conditions and the way they perform in the economic field given their own circumstances.
Main elements of the study of the generation gap
When learning about this concept, it is possible to base its relevance on the following highlighted sections:
- GDP per capita. The young or the oldest population have different levels of average wealth.
- Access to housing. In general, the young population has more difficulties when it comes to acquiring real estate.
- Work market. While young people commonly have worse working conditions and less experience, the older population often has long-term contracts and greater savings capacity.
- Adaptation to changes. The appearance of technology has a response in economic systems by allowing new sectors and the improvement of production processes.
At the same time, it is important to highlight the appearance of the call as a digital divide, motivated by the appearance and rapid expansion of the Internet and the new communication systems.
The generation gap and conjunctural changes
Taking into account the explained concept, the generation gap is widely influenced by the changes experienced in the economic and financial spectrum.
In this sense, it is common for the appearance of economic crises to have sociological consequences and accentuate said gap.
As an example, the financial crisis that emerged in 2008 with the subprime crisis affected both the level of population wealth and the destruction of a large number of jobs.
Additionally, access to home purchase underwent a transcendental change due to the banking crisis generated.
This affected indistinctly: young people saw their entry into the labor market or the acquisition of real estate more complicated.
Many of these changes have been observed at different times in recent times with the generation baby boomers or the appearance of others such as the recent generation z.
Generation gap in economic policy
The policies carried out in economic matters often focus their attention on widening or reducing the generation gap.
An example of this is the application of improvements in the conditions of pensioners or the reduction or elimination of certain taxes from a certain age range.
On the opposite side, it is possible to find incentives from the Administration. Incentives aimed at the purchase of housing or its rental to people under 35 years of age, to name a common type of action.
Another measure is the rise in minimum wages in an economy, which usually tends to benefit more young people who are starting their professional career or performing temporary work.