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Lifetime earnings and life expectancy

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Author Info

  • Hans-Martin von Gaudecker

    (Max Planck Institute for Demographic Research, Rostock, Germany)

  • Rembrandt D. Scholz

    (Max Planck Institute for Demographic Research, Rostock, Germany)

Abstract

We estimate remaining life expectancy at age 65 using a very large sample of male German pensioners. Our analysis is entirely nonparametric. Furthermore, the data enable us to compare life expectancy in eastern and western Germany conditional on a measure of socio-economic status. Our findings show a lower bound of almost fifty percent (six years) on the difference in remaining life expectancy between the lowest and the highest socio-economic group considered. Within groups, we find similar values for East and West. Our analysis contributes to the literature in several aspects. First, Germany is clearly underrepresented in differential mortality studies. Second, we are able to use a novel measure of lifetime earnings as a proxy for socio-economic status that remains valid for retired people. Third, the comparison of eastern and western Germany may provide some interesting insights for transformation countries.

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File URL: http://www.demogr.mpg.de/papers/working/wp-2006-008.pdf
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Bibliographic Info

Paper provided by Max Planck Institute for Demographic Research, Rostock, Germany in its series MPIDR Working Papers with number WP-2006-008.

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Length: 34 pages
Date of creation: Mar 2006
Date of revision:
Handle: RePEc:dem:wpaper:wp-2006-008

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

Related research

Keywords: Germany; life expectancy; pensioners; socio-economic differentials;

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References

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  1. Orazio P. Attanasio & Hilary Williamson Hoynes, 2000. "Differential Mortality and Wealth Accumulation," Journal of Human Resources, University of Wisconsin Press, vol. 35(1), pages 1-29.
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  5. Angus Deaton & Christina Paxson, 1999. "Mortality, education, income and inequality among American cohorts," Working Papers 279, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing..
  6. Palme, Mårten & Sandgren, Sofia, 2007. "Parental Income, Lifetime Income and Mortality," Research Papers in Economics 2007:4, Stockholm University, Department of Economics.
  7. Peter Adams & Michael D. Hurd & Daniel L. McFadden & Angela Merrill & Tiago Ribeiro, 2004. "Healthy, Wealthy, and Wise? Tests for Direct Causal Paths between Health and Socioeconomic Status," NBER Chapters, in: Perspectives on the Economics of Aging, pages 415-526 National Bureau of Economic Research, Inc.
  8. James P. Smith, 2004. "Unravelling the SES health connection," IFS Working Papers W04/02, Institute for Fiscal Studies.
  9. Anne Case & Darren Lubotsky & Christina Paxson, 2001. "Economic Status and Health in Childhood: The Origins of the Gradient," NBER Working Papers 8344, National Bureau of Economic Research, Inc.
  10. Eduardo Arriaga, 1984. "Measuring and explaining the change in life expectancies," Demography, Springer, vol. 21(1), pages 83-96, February.
  11. Dmitri A. Jdanov & Rembrandt D. Scholz & Vladimir Shkolnikov, 2005. "Official population statistics and the Human Mortality Database estimates of populations aged 80+ in Germany and nine other European countries," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 13(14), pages 335-362, November.
  12. Steven Haider & Gary Solon, 2006. "Life-Cycle Variation in the Association between Current and Lifetime Earnings," American Economic Review, American Economic Association, vol. 96(4), pages 1308-1320, September.
  13. 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.
  14. 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.
  15. Reil-Held, Anette, 2000. "Einkommen und Sterblichkeit in Deutschland: Leben Reiche länger?," Sonderforschungsbereich 504 Publications 00-14, Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim.
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Citations

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Cited by:
  1. Martin Salm, 2011. "The Effect of Pensions on Longevity: Evidence from Union Army Veterans," Economic Journal, Royal Economic Society, vol. 121(552), pages 595-619, 05.
  2. Ralf K. Himmelreicher & Hans-Martin von Gaudecker & Rembrandt D. Scholz, 2006. "Nutzungsmöglichkeiten von Daten der gesetzlichen Rentenversicherung über das Forschungsdatenzentrum der Rentenversicherung (FDZ-RV)," MPIDR Working Papers WP-2006-018, Max Planck Institute for Demographic Research, Rostock, Germany.
  3. Lutz, Roman, 2006. "Was spricht eigentlich gegen eine private Arbeitslosenversicherung?," IAB Discussion Paper 200624, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  4. Friedrich Breyer & Stefan Hupfeld, 2010. "On the Fairness of Early-Retirement Provisions," German Economic Review, Verein für Socialpolitik, vol. 11, pages 60-77, 02.
  5. Heidler, Matthias & Raffelhüschen, Bernd & Leifels, Arne, 2006. "Heterogenous life expectancy, adverse selection, and retirement behaviour," FZG Discussion Papers 13, Research Center for Generational Contracts (FZG), University of Freiburg.
  6. Ehrentraut, Oliver & Raffelhüschen, Bernd, 2008. "Demografischer Wandel und Betriebsrenten: Zur Berücksichtigung der Langlebigkeit bei der Anpassung von Direktzusagen," FZG Discussion Papers 25, Research Center for Generational Contracts (FZG), University of Freiburg.

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