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Evaluating the relationship between income, survival and loss of autonomy among older Canadians

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  • Marie Connolly
  • Akakpo Domefa-Konou
  • Marie-Louise Leroux

Abstract

Evaluating the relationship between health at old age and income is crucial for the design of equitable public policies targeted toward the elderly. Using 2016 Canadian survey data on adults aged between 50 and 70, we estimate the relationships between individual income, longevity and dependency at the old age. We use both subjective and objective measures of the probability to survive to age 85, of the probability to have activities of daily living (ADL) limitations, and of the probability of entering a nursing home. We find that income and the (objective and subjective) probability to live to age 85 and over are positively related while income and the (objective and subjective) probability to suffer from ADL limitations are negatively related. We also find that while the objective probability to enter a nursing home is negatively correlated with income, the subjective probability is positively correlated with income. Most of our results are driven by individuals in the highest tercile of the income distribution. Our results are robust to different sensitivity checks. L'évaluation de la relation entre la santé des personnes âgées et le revenu est cruciale pour la conception de politiques publiques équitables ciblées sur les personnes âgées. En utilisant les données d'une enquête canadienne de 2016 sur les adultes âgés de 50 à 70 ans, nous estimons les relations entre le revenu individuel, la longévité et la dépendance des personnes âgées. Nous utilisons des mesures subjectives et objectives de la probabilité de survivre jusqu'à 85 ans, de la probabilité d'avoir des limitations des activités de la vie quotidienne (AVQ) et de la probabilité d'entrer dans une maison de retraite. Nous constatons que le revenu et la probabilité (objective et subjective) de vivre jusqu'à 85 ans et plus sont positivement liés, tandis que le revenu et la probabilité (objective et subjective) de souffrir de limitations des activités de la vie quotidienne sont négativement liés. Nous constatons également que si la probabilité objective d'entrer dans une maison de retraite est négativement corrélée au revenu, la probabilité subjective est positivement corrélée au revenu. La plupart de nos résultats concernent les individus situés dans le tercile supérieur de la distribution des revenus. Nos résultats sont robustes à différents contrôles de sensibilité.

Suggested Citation

  • Marie Connolly & Akakpo Domefa-Konou & Marie-Louise Leroux, 2023. "Evaluating the relationship between income, survival and loss of autonomy among older Canadians," CIRANO Working Papers 2023s-04, CIRANO.
    • Handle: RePEc:cir:cirwor:2023s-04
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    More about this item

    Keywords

    Long term care; Survival probability; Probability to become dependent; Nursing home; Income; Soins de longue durée; Probabilité de survie; Probabilité de devenir dépendant; Maison de retraite; Revenu;
    All these keywords.

    JEL classification:

    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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