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Lifetime Earnings and Life Expectancy

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Author Info
Hans-Martin von Gaudecker ()
Rembrandt D. Scholz () (Mannheim Research Institute for the Economics of Aging (MEA))

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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 andWest. 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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Paper provided by Mannheim Research Institute for the Economics of Aging, University of Mannheim in its series MEA discussion paper series with number 06102.

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Date of creation: 16 Feb 2006
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Handle: RePEc:xrs:meawpa:06102

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  1. Anne Case & Darren Lubotsky & Christina Paxson, 2002. "Economic Status and Health in Childhood: The Origins of the Gradient," American Economic Review, American Economic Association, vol. 92(5), pages 1308-1334, December. [Downloadable!]
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  2. 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. [Downloadable!]
  3. 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. [Downloadable!]
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  4. Angus Deaton & Christina Paxson, 1999. "Mortality, Education, Income, and Inequality among American Cohorts," NBER Working Papers 7140, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. 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. [Downloadable!]
  6. 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. [Downloadable!] (restricted)
  7. James P. Smith, 2005. "Unraveling the SES-Health Connection," Labor and Demography 0505018, EconWPA. [Downloadable!]
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  8. 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. [Downloadable!]
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  9. 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. [Downloadable!] (restricted)
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  10. 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. [Downloadable!] (restricted)
  11. 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. [Downloadable!] (restricted)
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  1. 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. [Downloadable!]
  2. Friedrich Breyer & Stefan Hupfeld, 2007. "On the Fairness of Early Retirement Provisions," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  3. Martin Salm, 2007. "The Effect of Pensions on Longevity: Evidence from Union Army Veterans," IZA Discussion Papers 2668, Institute for the Study of Labor (IZA). [Downloadable!]
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