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Pension generosity and mental wellbeing: The effect of eradicating poverty at old-age

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  • Danzer, Alexander M.
  • Danzer, Natalia

Abstract

This paper exploits a unique shift in pension generosity to study the effect of eradicating old-age poverty on mental health. Based on a difference-in-differences set-up we show with two independent data sets from Ukraine that greater pension generosity improves subjective well-being and reduces the incidence of diagnosed depressions. Neither more available leisure time, nor higher consumption levels, nor enhanced physical health can explain the empirical mental health improvement. Instead, we suggest that the main channel for the mental health improvement is the reduced reliance on potentially stressful modes of income generation at old age, such as family household transfers, indebtedness and unpaid bills.

Suggested Citation

  • Danzer, Alexander M. & Danzer, Natalia, 2016. "Pension generosity and mental wellbeing: The effect of eradicating poverty at old-age," VfS Annual Conference 2016 (Augsburg): Demographic Change 145910, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc16:145910
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    References listed on IDEAS

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    Cited by:

    1. Ravit Rubinstein-Levi & Haim Kedar-Levy, 2019. "The Effect of Attitudes Regarding Retirement on Pension Savings," Review of Economics & Finance, Better Advances Press, Canada, vol. 15, pages 1-13, February.

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    More about this item

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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