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The Effect of Pensions on Longevity: Evidence from Union Army Veterans

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  • Martin Salm

Abstract

This study uses changes in pension laws for Union Army veterans as a natural experiment to estimate the causal effect of pensions on longevity, and to examine potential pathways underlying such a relationship. We examine the effects of the pension laws of 1907 and 1912, which granted old-age pensions to Union Army veterans. Life expectancy for veterans, who received such a pension, increased by 0.5 years and 2.7 years, respectively. The effect of veteran pensions on longevity was large across wealth groups and size of city. Pensions reduced mortality for both acute and non-acute causes of death.
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Suggested Citation

  • Martin Salm, 2011. "The Effect of Pensions on Longevity: Evidence from Union Army Veterans," Economic Journal, Royal Economic Society, vol. 121(552), pages 595-619, May.
    • Handle: RePEc:ecj:econjl:v:121:y:2011:i:552:p:595-619
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    Cited by:

    1. Fitzpatrick, Maria D. & Moore, Timothy J., 2018. "The mortality effects of retirement: Evidence from Social Security eligibility at age 62," Journal of Public Economics, Elsevier, vol. 157(C), pages 121-137.
    2. Noghanibehambari, Hamid & Fletcher, Jason, 2023. "Long-Term Health Benefits of Occupational Licensing: Evidence from Midwifery Laws," Journal of Health Economics, Elsevier, vol. 92(C).
    3. Mathieu Lefebvre & Pierre Pestieau & Gregory Ponthiere, 2013. "Measuring poverty without the Mortality Paradox," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 40(1), pages 285-316, January.
    4. Pierre Pestieau & Gregory Ponthiere, 2012. "The Public Economics of Increasing Longevity," Hacienda Pública Española / Review of Public Economics, IEF, vol. 200(1), pages 41-74, March.
    5. Mathieu Lefèbvre & Pierre Pestieau & Gregory Ponthiere, 2019. "Premature mortality and poverty measurement in an OLG economy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(2), pages 621-664, April.
    6. Westerhout, Ed, 2018. "Paying for the Ageing Crisis : Who, How and When?," Other publications TiSEM 417903d2-6318-4744-891e-1, Tilburg University, School of Economics and Management.
    7. Owen O'Donnell & Eddy Van Doorslaer & Tom Van Ourti, 2013. "Health and Inequality," Tinbergen Institute Discussion Papers 13-170/V, Tinbergen Institute.
    8. Alexander Gelber & Timothy Moore & Zhuan Pei & Alexander Strand, 2023. "Disability Insurance Income Saves Lives," Journal of Political Economy, University of Chicago Press, vol. 131(11), pages 3156-3185.
    9. Pierre Pestieau & Gregory Ponthiere, 2014. "Policy Implications of Changing Longevity," CESifo Economic Studies, CESifo Group, vol. 60(1), pages 178-212.
    10. Jäger, Philipp, 2023. "Can pensions save lives? Evidence from the introduction of old-age assistance in the UK," Ruhr Economic Papers 995, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    11. Cornelissen, Thomas & Dang, Thang, 2022. "The multigenerational impacts of educational expansion: Evidence from Vietnam," Labour Economics, Elsevier, vol. 78(C).
    12. Bruno Kawaoka Komatsu & Lucas Dias & Naercio Menezes-Filho, 2024. "Assessing the Permanent Income Hypothesis in Poor Areas: The Case of Rural Pensions in Brazil," Business and Economics Working Papers 241, Unidade de Negocios e Economia, Insper.
    13. Lefebvre, Mathieu & Pestieau, Pierre & Ponthiere, Gregory, 2019. "Missing poor and income mobility," Journal of Comparative Economics, Elsevier, vol. 47(2), pages 330-366.
    14. Hamid Noghanibehambari & Jason Fletcher, 2025. "In Money, We Survive: The Effects of Social Security Retirement Income on Longevity," NBER Working Papers 34199, National Bureau of Economic Research, Inc.
    15. Enrico Miglino & Nicolás Navarrete H. & Gonzalo Navarrete H. & Pablo Navarrete H., 2023. "Health Effects of Increasing Income for the Elderly: Evidence from a Chilean Pension Program," American Economic Journal: Economic Policy, American Economic Association, vol. 15(1), pages 370-393, February.
    16. Noghanibehambari, Hamid & Engelman, Michal, 2022. "Social insurance programs and later-life mortality: Evidence from new deal relief spending," Journal of Health Economics, Elsevier, vol. 86(C).
    17. Westerhout, Ed, 2018. "Paying for the Ageing Crisis : Who, How and When?," Discussion Paper 2018-001, Tilburg University, Center for Economic Research.

    More about this item

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • N41 - Economic History - - Government, War, Law, International Relations, and Regulation - - - U.S.; Canada: Pre-1913

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