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Differential mortality by lifetime earnings in Germany

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  • Hans-Martin von Gaudecker

    (Free University Amsterdam)

  • Rembrandt D. Scholz

    (Rostocker Zentrum zur Erforschung des Demografischen Wandels)

Abstract

e estimate mortality rates by a measure of socio-economic status in a very large sample of male German pensioners aged~65 or older. Our analysis is entirely nonparametric. Furthermore, the data enable us to compare mortality experiences in eastern and western Germany conditional on socio-economic status. As a simple summary measure, we compute period life expectancies at age~65. Our findings show a lower bound of almost 50 percent (six years) on the difference in life expectancy between the lowest and the highest socio-economic group considered. Within groups, we find similar values for the former GDR and western Germany. Our analysis contributes to the literature in three aspects. First, we provide the first population-based differential mortality study for Germany. Second, we use a novel measure of lifetime earnings as a proxy for socio-economic status that remains applicable to retired people. Third, the comparison between eastern and western Germany may provide some interesting insights for transformation countries.

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Bibliographic Info

Article provided by Max Planck Institute for Demographic Research, Rostock, Germany in its journal Demographic Research.

Volume (Year): 17 (2007)
Issue (Month): 4 (August)
Pages: 83-108

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Handle: RePEc:dem:demres:v:17:y:2007:i:4

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Web page: http://www.demogr.mpg.de/

Related research

Keywords: comparison East and West Germany; lifetime earnings measure; mortality and socio-economic status;

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References

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  1. Mårten Palme & Sofia Sandgren, 2008. "Parental Income, Lifetime Income, and Mortality," Journal of the European Economic Association, MIT Press, vol. 6(4), pages 890-911, 06.
  2. Adams, Peter & Hurd, Michael D. & McFadden, Daniel & Merrill, Angela & Ribeiro, Tiago, 2003. "Healthy, wealthy, and wise? Tests for direct causal paths between health and socioeconomic status," Journal of Econometrics, Elsevier, vol. 112(1), pages 3-56, January.
  3. James P. Smith, 2004. "Unravelling the SES health connection," IFS Working Papers W04/02, Institute for Fiscal Studies.
  4. Steven Haider & Gary Solon, 2006. "Life-Cycle Variation in the Association between Current and Lifetime Earnings," NBER Working Papers 11943, National Bureau of Economic Research, Inc.
  5. Orazio P. Attanasio & Hilary W. Hoynes, 1995. "Differential Mortality and Wealth Accumulation," NBER Working Papers 5126, National Bureau of Economic Research, Inc.
  6. Nolte, Ellen & McKee, Martin, 2004. "Changing health inequalities in east and west Germany since unification," Social Science & Medicine, Elsevier, vol. 58(1), pages 119-136, January.
  7. Jonathan Meer & Douglas L. Miller & Harvey S. Rosen, 2003. "Exploring the Health-Wealth Nexus," NBER Working Papers 9554, National Bureau of Economic Research, Inc.
  8. Anne Case & Darren Lubotsky & Christina Paxson, 2002. "Economic status and health in childhood: the origins of the gradient," Working Papers 262, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing..
  9. Axel Boersch-Supan & Christina B. Wilke, 2004. "The German Public Pension System: How it Was, How it Will Be," NBER Working Papers 10525, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Michele Belloni & Rob Alessie & Adriaan Kalwij & Chiara Marinacci, 2012. "Lifetime income and old age mortality risk in Italy over two decades," Working Papers 2012: 29, Department of Economics, University of Venice "Ca' Foscari".
  2. Kallweit, Manuel & Fehr, Hans & Kindermann, Fabian, 2011. "Should pensions be progressive? Yes, at least in Germany!," Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis 48708, Verein für Socialpolitik / German Economic Association.
  3. Direr, A., 2010. "The taxation of life annuities under adverse selection," Journal of Public Economics, Elsevier, vol. 94(1-2), pages 50-58, February.
  4. Fehr, Hans & Kallweit, Manuel & Kindermann, Fabian, 2013. "Should pensions be progressive?," European Economic Review, Elsevier, vol. 63(C), pages 94-116.
  5. Friedrich Breyer & Jan Marcus, 2011. "Income and Longevity Revisited: Do High-earning Women Live Longer?," Working Paper Series of the Department of Economics, University of Konstanz 2011-13, Department of Economics, University of Konstanz.
  6. Friedrich Breyer & Normann Lorenz & Thomas Niebel, 2012. "Health Care Expenditures and Longevity: Is There a Eubie Blake Effect?," Discussion Papers of DIW Berlin 1226, DIW Berlin, German Institute for Economic Research.
  7. Wolfgang H. Reichmuth & Samad Sarferaz, 2008. "The Influence of the Business Cycle on Mortality," SFB 649 Discussion Papers SFB649DP2008-059, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
  8. Knoef, M.G., 2011. "Essays on labor force participation, aging, income and health," Open Access publications from Tilburg University urn:nbn:nl:ui:12-4807622, Tilburg University.
  9. Fehr, Hans & Jokisch, Sabine & Kallweit, Manuel & Kindermann, Fabian & Kotlikoff, Laurence J., 2013. "Generational Policy and Aging in Closed and Open Dynamic General Equilibrium Models," Handbook of Computable General Equilibrium Modeling, Elsevier.
  10. Jürges, Hendrik, 2013. "Bildungspolitik versus Gesundheitspolitik - Evidenzbasierte Interventionen gegen soziale Ungleichheit in Gesundheit," MEA discussion paper series 13275, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
  11. Christoph Schinke, 2012. "Inheritance in Germany 1911 to 2009: A Mortality Multiplier Approach," SOEPpapers on Multidisciplinary Panel Data Research 462, DIW Berlin, The German Socio-Economic Panel (SOEP).
  12. Friedrich Breyer & Stefan Hupfeld, 2010. "On the Fairness of Early-Retirement Provisions," German Economic Review, Verein für Socialpolitik, vol. 11, pages 60-77, 02.
  13. Markus Knell, 2013. "The Austrian System of Individual Pension Accounts – An Unfinished Symphony," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 4, pages 47-62.
  14. Elisabetta Santarelli & Anna De Pascale, . "Economic, housing conditions and health of old people in Italy: evidence from EU-SILC," Working Papers 99/12, Sapienza University of Rome, Metodi e modelli per l'economia, il territorio e la finanza MEMOTEF.

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