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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. O. Attanasio & H. W. Hoynes, . "Differential mortality and wealth accumulation," Institute for Research on Poverty Discussion Papers 1079-96, University of Wisconsin Institute for Research on Poverty.
  2. 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.
  3. Dmitri A. Jdanov & Rembrandt D. Scholz & Vladimir M. Shkolnikov, 2005. "Official population statistics and the Human Mortality Database estimates of populations aged 80+ in Germany and nine other European countries," MPIDR Working Papers WP-2005-010, Max Planck Institute for Demographic Research, Rostock, Germany.
  4. Palme, Mårten & Sandgren, Sofia, 2007. "Parental Income, Lifetime Income and Mortality," Research Papers in Economics 2007:4, Stockholm University, Department of Economics.
  5. 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.
  6. 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.
  7. Angus S. Deaton & Christina Paxson, 2001. "Mortality, Education, Income, and Inequality among American Cohorts," NBER Chapters, in: Themes in the Economics of Aging, pages 129-170 National Bureau of Economic Research, Inc.
  8. Meer, Jonathan & Miller, Douglas L. & Rosen, Harvey S., 2003. "Exploring the health-wealth nexus," Journal of Health Economics, Elsevier, vol. 22(5), pages 713-730, September.
  9. 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..
  10. James P. Smith, 2005. "Unraveling the SES-Health Connection," Labor and Demography 0505018, EconWPA.
  11. 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.
  12. Orazio P. Attanasio & Carl Emmerson, 2003. "Mortality, Health Status, and Wealth," Journal of the European Economic Association, MIT Press, vol. 1(4), pages 821-850, 06.
  13. Dmitri A. Jdanov & Rembrandt D. Scholz & Vladimir M. 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.
  14. 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.
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Citations

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Cited by:
  1. Martin Salm, 2007. "The Effect of Pensions on Longevity: Evidence from Union Army Veterans," MEA discussion paper series 07118, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
  2. 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].
  3. 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.
  4. 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.
  5. 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.
  6. Friedrich Breyer & Stefan Hupfeld, 2007. "On the Fairness of Early Retirement Provisions," CESifo Working Paper Series 2078, CESifo Group Munich.

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