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Health, Education, and the Postretirement Evolution of Household Assets

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  • James Poterba
  • Steven Venti
  • David A. Wise

Abstract

We explore the relationship between education and the evolution of wealth after retirement. Asset growth following retirement depends in part on health capital and financial capital accumulated prior to retirement, which in turn are strongly related to educational attainment. These “initial conditions” at retirement can have a lingering effect on subsequent asset evolution. We aim to disentangle the effects of education that operate through health and financial pathways prior to retirement from the effects of education that impinge directly on asset evolution after retirement. We find a substantial effect of education on asset growth through each of the pathways.

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Bibliographic Info

Article provided by University of Chicago Press in its journal Journal of Human Capital.

Volume (Year): 7 (2013)
Issue (Month): 4 ()
Pages: 297 - 339

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Handle: RePEc:ucp:jhucap:doi:10.1086/673207

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Cited by:
  1. Courtney Coile & Kevin S. Milligan & David A. Wise, 2014. "Social Security Programs and Retirement Around the World: Disability Insurance Programs and Retirement - Introduction and Summary," NBER Working Papers 20120, National Bureau of Economic Research, Inc.
  2. James Banks & Carl Emmerson & Gemma Tetlow, 2014. "Effect of Pensions and Disability Benefits on Retirement in the UK," NBER Chapters, in: Social Security Programs and Retirement Around the World: Disability Insurance Programs and Retirement National Bureau of Economic Research, Inc.
  3. David A. Wise, 2014. "Introduction to "Social Security Programs and Retirement Around the World: Disability Insurance Programs and Retirement"," NBER Chapters, in: Social Security Programs and Retirement Around the World: Disability Insurance Programs and Retirement National Bureau of Economic Research, Inc.
  4. Steven F. Venti, 2013. "Comment on "A Comparison of Different Measures of Health and their Relation to Labor Force Transitions at Older Ages"," NBER Chapters, in: Discoveries in the Economics of Aging, pages 151-156 National Bureau of Economic Research, Inc.
  5. Annamaria Lusardi & Olivia S. Mitchell, 2013. "The Economic Importance of Financial Literacy: Theory and Evidence," CeRP Working Papers 134, Center for Research on Pensions and Welfare Policies, Turin (Italy).
  6. Duca, John V. & Kumar, Anil, 2014. "Financial literacy and mortgage equity withdrawals," Journal of Urban Economics, Elsevier, vol. 80(C), pages 62-75.
  7. Alan L. Gustman & Thomas L. Steinmeier, 2014. "The Role of Health in Retirement," NBER Working Papers 19902, National Bureau of Economic Research, Inc.
  8. Arie Kapteyn & Erik Meijer, 2013. "A Comparison of Different Measures of Health and their Relation to Labor Force Transitions at Older Ages," NBER Chapters, in: Discoveries in the Economics of Aging, pages 115-150 National Bureau of Economic Research, Inc.

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