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Lifetime Earnings and Life Expectancy

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  • von Gaudecker, Hans-Martin

    ()
    (Mannheim Research Institute for the Economics of Aging)

  • Scholz, Rembrandt

    ()
    (Max Planck Institute for Demographic Research)

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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Bibliographic Info

Paper provided by Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim in its series Sonderforschungsbereich 504 Publications with number 07-05.

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Length: 36 pages
Date of creation: 15 Feb 2006
Date of revision:
Handle: RePEc:xrs:sfbmaa:07-05

Note: Financial support from the Deutsche Forschungsgemeinschaft, SFB 504, at the University of Mannheim, is gratefully acknowledged.
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References

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  1. Angus Deaton & Christina Paxson, 1999. "Mortality, Education, Income, and Inequality among American Cohorts," NBER Working Papers 7140, National Bureau of Economic Research, Inc.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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..
  7. 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.
  8. Jonathan Meer & Douglas L. Miller & Harvey S. Rosen, 2003. "Exploring the Health-Wealth Nexus," NBER Working Papers 9554, National Bureau of Economic Research, Inc.
  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.
  10. James P. Smith, 2004. "Unravelling the SES health connection," IFS Working Papers W04/02, Institute for Fiscal Studies.
  11. 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.
  12. 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.
  13. Mårten Palme & Sofia Sandgren, 2008. "Parental Income, Lifetime Income, and Mortality," Journal of the European Economic Association, MIT Press, vol. 6(4), pages 890-911, 06.
  14. 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.
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Cited by:
  1. Friedrich Breyer & Stefan Hupfeld, 2007. "On the Fairness of Early Retirement Provisions," CESifo Working Paper Series 2078, CESifo Group Munich.
  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. Salm, Martin, 2007. "The Effect of Pensions on Longevity: Evidence from Union Army Veterans," IZA Discussion Papers 2668, Institute for the Study of Labor (IZA).
  4. 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.
  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. 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].

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