IDEAS home Printed from https://ideas.repec.org/a/bla/coecpo/v36y2018i3p526-538.html
   My bibliography  Save this article

Life Insurance Holdings And Well‐Being Of Surviving Spouses

Author

Listed:
  • Timothy F. Harris
  • Aaron Yelowitz

Abstract

Premature death of a breadwinner can have devastating financial consequences on surviving dependents. This study investigates the role of life insurance in mitigating the long‐run financial consequences of spousal mortality. Using the Health and Retirement Study, we examine individuals whose spouses died during or soon after his or her peak earnings years. After controlling for socioeconomic status, we find that sizable lump‐sum life insurance payouts do not significantly influence spousal well‐being. (JEL D31, G22, I31, J32, J33, J38)

Suggested Citation

  • Timothy F. Harris & Aaron Yelowitz, 2018. "Life Insurance Holdings And Well‐Being Of Surviving Spouses," Contemporary Economic Policy, Western Economic Association International, vol. 36(3), pages 526-538, July.
    • Handle: RePEc:bla:coecpo:v:36:y:2018:i:3:p:526-538
    DOI: 10.1111/coep.12211
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/coep.12211
    Download Restriction: no
    File URL: https://libkey.io/10.1111/coep.12211?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Joshua D. Angrist & Alan B. Krueger, 2001. "Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments," Working Papers 834, Princeton University, Department of Economics, Industrial Relations Section..
    2. Timothy F. Harris & Aaron Yelowitz, 2018. "Racial disparities in life insurance coverage," Applied Economics, Taylor & Francis Journals, vol. 50(1), pages 94-107, January.
    3. V. Joseph Hotz & Susan Williams McElroy & Seth G. Sanders, 2005. "Teenage Childbearing and Its Life Cycle Consequences: Exploiting a Natural Experiment," Journal of Human Resources, University of Wisconsin Press, vol. 40(3).
    4. Chang, Angela E., 1996. "Tax Policy, Lump-Sum Pension Distributions, and Household Saving," National Tax Journal, National Tax Association;National Tax Journal, vol. 49(2), pages 235-249, June.
    5. Currie, Janet & Yelowitz, Aaron, 2000. "Are public housing projects good for kids?," Journal of Public Economics, Elsevier, vol. 75(1), pages 99-124, January.
    6. Nicholas S. Souleles & Jonathan A. Parker & David S. Johnson, 2006. "Household Expenditure and the Income Tax Rebates of 2001," American Economic Review, American Economic Association, vol. 96(5), pages 1589-1610, December.
    7. Imbens, Guido W. & Lemieux, Thomas, 2008. "Regression discontinuity designs: A guide to practice," Journal of Econometrics, Elsevier, vol. 142(2), pages 615-635, February.
    8. Chang, Angela E., 1996. "Tax Policy, Lump-Sum Pension Distributions, and Household Saving," National Tax Journal, National Tax Association, vol. 49(2), pages 235-49, June.
    9. B. Douglas Bernheim & Lorenzo Forni & Jagadeesh Gokhale & Laurence J. Kotlikoff, 2003. "The Mismatch Between Life Insurance Holdings and Financial Vulnerabilities: Evidence from the Health and Retirement Study," American Economic Review, American Economic Association, vol. 93(1), pages 354-365, March.
    10. Jonah B. Gelbach, 2016. "When Do Covariates Matter? And Which Ones, and How Much?," Journal of Labor Economics, University of Chicago Press, vol. 34(2), pages 509-543.
    11. Angrist, Joshua D, 1990. "Lifetime Earnings and the Vietnam Era Draft Lottery: Evidence from Social Security Administrative Records: Errata," American Economic Review, American Economic Association, vol. 80(5), pages 1284-1286, December.
    12. Albert Saiz, 2010. "The Geographic Determinants of Housing Supply," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(3), pages 1253-1296.
    13. Liran Einav & Amy Finkelstein & Mark R. Cullen, 2010. "Estimating Welfare in Insurance Markets Using Variation in Prices," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(3), pages 877-921.
    14. David Hedengren & Thomas Stratmann, 2016. "Is There Adverse Selection In Life Insurance Markets?," Economic Inquiry, Western Economic Association International, vol. 54(1), pages 450-463, January.
    15. Angrist, Joshua D, 1990. "Lifetime Earnings and the Vietnam Era Draft Lottery: Evidence from Social Security Administrative Records," American Economic Review, American Economic Association, vol. 80(3), pages 313-336, June.
    16. Jeffrey Grogger, 1995. "The Effect of Arrests on the Employment and Earnings of Young Men," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(1), pages 51-71.
    17. Espinosa, Javier & Evans, William N., 2008. "Heightened mortality after the death of a spouse: Marriage protection or marriage selection?," Journal of Health Economics, Elsevier, vol. 27(5), pages 1326-1342, September.
    18. Ahn, Thomas & Yelowitz, Aaron, 2016. "Paid Sick Leave and Absenteeism: The First Evidence from the U.S," MPRA Paper 69794, University Library of Munich, Germany.
    19. Harris, Timothy & Yelowitz, Aaron, 2014. "Is there adverse selection in the life insurance market? Evidence from a representative sample of purchasers," Economics Letters, Elsevier, vol. 124(3), pages 520-522.
    20. Auerbach, Alan J. & Kotlikoff, Laurence J., 1991. "The adequacy of life insurance purchases," Journal of Financial Intermediation, Elsevier, vol. 1(3), pages 215-241, June.
    21. Raj Chetty & John N. Friedman & Søren Leth-Petersen & Torben Heien Nielsen & Tore Olsen, 2014. "Active vs. Passive Decisions and Crowd-Out in Retirement Savings Accounts: Evidence from Denmark," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(3), pages 1141-1219.
    22. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
    23. James M. Poterba & Steven F. Venti, 1998. "Lump-Sum Distributions from Retirement Saving Plans: Receipt and Utilization," NBER Chapters, in: Inquiries in the Economics of Aging, pages 85-108, National Bureau of Economic Research, Inc.
    24. Attila Cseh*, 2008. "The Effects of Depressive Symptoms on Earnings," Southern Economic Journal, John Wiley & Sons, vol. 75(2), pages 383-409, October.
    25. Joshua Angrist & Alan Krueger, 2001. "Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments," Working Papers 834, Princeton University, Department of Economics, Industrial Relations Section..
    26. Poterba, James M. & Venti, Steven F. & Wise, David A., 1995. "Do 401(k) contributions crowd out other personal saving?," Journal of Public Economics, Elsevier, vol. 58(1), pages 1-32, September.
    27. Timothy F. Harris & Aaron Yelowitz, 2017. "Nudging Life Insurance Holdings In The Workplace," Economic Inquiry, Western Economic Association International, vol. 55(2), pages 951-981, April.
    28. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, vol. 62(2), pages 467-475, March.
    29. Butler, Monika & Teppa, Federica, 2007. "The choice between an annuity and a lump sum: Results from Swiss pension funds," Journal of Public Economics, Elsevier, vol. 91(10), pages 1944-1966, November.
    30. David Neumark, 2003. "Age Discrimination Legislation in the United States," Contemporary Economic Policy, Western Economic Association International, vol. 21(3), pages 297-317, July.
    31. Attila Cseh*, 2008. "The Effects of Depressive Symptoms on Earnings," Southern Economic Journal, Southern Economic Association, vol. 75(2), pages 383-409, October.
    32. David Laibson, 1997. "Golden Eggs and Hyperbolic Discounting," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(2), pages 443-478.
    33. Brigitte C. Madrian & Dennis F. Shea, 2001. "The Power of Suggestion: Inertia in 401(k) Participation and Savings Behavior," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(4), pages 1149-1187.
    34. Joshua D. Angrist & Alan B. Krueger, 2001. "Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 69-85, Fall.
    35. Horrace, William C. & Oaxaca, Ronald L., 2006. "Results on the bias and inconsistency of ordinary least squares for the linear probability model," Economics Letters, Elsevier, vol. 90(3), pages 321-327, March.
    36. Rees, Daniel I. & Argys, Laura M. & Averett, Susan L., 2001. "New evidence on the relationship between substance use and adolescent sexual behavior," Journal of Health Economics, Elsevier, vol. 20(5), pages 835-845, September.
    37. repec:fth:prinin:455 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eva Deuchert & Martin Huber, 2017. "A Cautionary Tale About Control Variables in IV Estimation," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 79(3), pages 411-425, June.
    2. Ellis, Jimmy R. & Gershenson, Seth, 2016. "LATE for the Meeting: Gender, Peer Advising, and College Success," IZA Discussion Papers 9956, Institute of Labor Economics (IZA).
    3. Timothy F. Harris & Aaron Yelowitz, 2017. "Nudging Life Insurance Holdings In The Workplace," Economic Inquiry, Western Economic Association International, vol. 55(2), pages 951-981, April.
    4. Guanghui Pan, 2024. "Methodological Foundations of Modern Causal Inference in Social Science Research," Papers 2408.00032, arXiv.org.
    5. Öberg, Stefan, 2021. "Treatment for natural experiments: How to improve causal estimates using conceptual definitions and substantive interpretations," SocArXiv pkyue, Center for Open Science.
    6. Foster, E. Michael & McCombs-Thornton, Kimberly, 2013. "Child welfare and the challenge of causal inference," Children and Youth Services Review, Elsevier, vol. 35(7), pages 1130-1142.
    7. Rietveld, Cornelius A. & Webbink, Dinand, 2016. "On the genetic bias of the quarter of birth instrument," Economics & Human Biology, Elsevier, vol. 21(C), pages 137-146.
    8. Manuel Denzer, 2019. "Estimating Causal Effects in Binary Response Models with Binary Endogenous Explanatory Variables - A Comparison of Possible Estimators," Working Papers 1916, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.
    9. Akbar Marvasti & Sami Dakhlia, 2024. "Moral hazard and selection bias in insurance markets: Evidence from commercial fisheries," Southern Economic Journal, John Wiley & Sons, vol. 90(3), pages 682-700, January.
    10. Mauricio Villamizar‐Villegas & Freddy A. Pinzon‐Puerto & Maria Alejandra Ruiz‐Sanchez, 2022. "A comprehensive history of regression discontinuity designs: An empirical survey of the last 60 years," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 1130-1178, September.
    11. John Cawley & Euna Han & Edward C. Norton, 2011. "The validity of genes related to neurotransmitters as instrumental variables," Health Economics, John Wiley & Sons, Ltd., vol. 20(8), pages 884-888, August.
    12. Florence Kondylis & Valerie Mueller, 2014. "Economic consequences of conflict and environmental displacement," Chapters, in: Robert E.B. Lucas (ed.), International Handbook on Migration and Economic Development, chapter 14, pages 388-424, Edward Elgar Publishing.
    13. Karim Chalak & Halbert White, 2011. "Viewpoint: An extended class of instrumental variables for the estimation of causal effects," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 44(1), pages 1-51, February.
    14. Luis Antonio Fantozzi Alvarez & Rodrigo Toneto, 2024. "The interpretation of 2SLS with a continuous instrument: a weighted LATE representation," Working Papers, Department of Economics 2024_11, University of São Paulo (FEA-USP).
    15. Mikel Bedayo, 2016. "Creating associations to substitute banks’direct credit. Evidence from Belgium," Working Paper Research 315, National Bank of Belgium.
    16. Cuong Viet Nguyen & Finn Tarp, 2023. "Cash Transfers and Labor Supply: New Evidence on Impacts and Mechanisms," DERG working paper series 23-18, University of Copenhagen. Department of Economics. Development Economics Research Group (DERG).
    17. Michael T. French & Ioana Popovici, 2011. "That instrument is lousy! In search of agreement when using instrumental variables estimation in substance use research," Health Economics, John Wiley & Sons, Ltd., vol. 20(2), pages 127-146, February.
    18. Yao, Yao & Chen, George S. & Salim, Ruhul & Yu, Xiaojun, 2018. "Schooling returns for migrant workers in China: Estimations from the perspective of the institutional environment in a rural setting," China Economic Review, Elsevier, vol. 51(C), pages 240-256.
    19. Rockers, Peter C. & Røttingen, John-Arne & Shemilt, Ian & Tugwell, Peter & Bärnighausen, Till, 2015. "Inclusion of quasi-experimental studies in systematic reviews of health systems research," Health Policy, Elsevier, vol. 119(4), pages 511-521.
    20. Karim Chalak & Halbert White, 2007. "An Extended Class of Instrumental Variables for the Estimation of Causal Effects," Boston College Working Papers in Economics 692, Boston College Department of Economics, revised 30 Nov 2009.

    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:coecpo:v:36:y:2018:i:3:p:526-538. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/weaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.