IDEAS home Printed from https://ideas.repec.org/a/eee/pubeco/v131y2015icp21-32.html
   My bibliography  Save this article

Income receipt and mortality — Evidence from Swedish public sector employees

Author

Listed:
  • Andersson, Elvira
  • Lundborg, Petter
  • Vikström, Johan

Abstract

In this paper, we study the short-run effect of salary receipt on mortality among Swedish public sector employees. By exploiting variation in paydays across work-places, we completely control for mortality patterns related to, for example, public holidays and other special days or events coinciding with paydays and for general within-month and within-week mortality patterns. We find a dramatic increase in mortality on the day that salaries arrive. The increase is especially pronounced for younger workers and for deaths due to activity-related causes such as heart conditions and strokes. The effect is entirely driven by an increase in mortality among low income individuals, who are more likely to experience liquidity constraints. All things considered, our results suggest that an increase in general economic activity on salary receipt is an important cause of the excess mortality.

Suggested Citation

  • Andersson, Elvira & Lundborg, Petter & Vikström, Johan, 2015. "Income receipt and mortality — Evidence from Swedish public sector employees," Journal of Public Economics, Elsevier, vol. 131(C), pages 21-32.
  • Handle: RePEc:eee:pubeco:v:131:y:2015:i:c:p:21-32
    DOI: 10.1016/j.jpubeco.2015.08.006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0047272715001413
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jpubeco.2015.08.006?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
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Rajeev Dehejia & Adriana Lleras-Muney, 2004. "Booms, Busts, and Babies' Health," The Quarterly Journal of Economics, Oxford University Press, vol. 119(3), pages 1091-1130.
    2. Shea, John, 1995. "Union Contracts and the Life-Cycle/Permanent-Income Hypothesis," American Economic Review, American Economic Association, vol. 85(1), pages 186-200, March.
    3. William N. Evans & Timothy J. Moore, 2012. "Liquidity, Economic Activity, and Mortality," The Review of Economics and Statistics, MIT Press, vol. 94(2), pages 400-418, May.
    4. Angus Deaton, 2003. "Health, Inequality, and Economic Development," Journal of Economic Literature, American Economic Association, vol. 41(1), pages 113-158, March.
    5. Ruhm, Christopher J., 2005. "Healthy living in hard times," Journal of Health Economics, Elsevier, vol. 24(2), pages 341-363, March.
    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. Jacobson, Louis S & LaLonde, Robert J & Sullivan, Daniel G, 1993. "Earnings Losses of Displaced Workers," American Economic Review, American Economic Association, vol. 83(4), pages 685-709, September.
    8. Louis S. Jacobson & Robert J. LaLonde & Daniel G. Sullivan, 1993. "Long-term earnings losses of high-seniority displaced workers," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 17(Nov), pages 2-20.
    9. Melvin Stephens Jr., 2003. ""3rd of tha Month": Do Social Security Recipients Smooth Consumption Between Checks?," American Economic Review, American Economic Association, vol. 93(1), pages 406-422, March.
    10. Dobkin, Carlos & Puller, Steven L., 2007. "The effects of government transfers on monthly cycles in drug abuse, hospitalization and mortality," Journal of Public Economics, Elsevier, vol. 91(11-12), pages 2137-2157, December.
    11. Gerdtham, Ulf-G. & Ruhm, Christopher J., 2006. "Deaths rise in good economic times: Evidence from the OECD," Economics & Human Biology, Elsevier, vol. 4(3), pages 298-316, December.
    12. Christopher J. Ruhm, 2000. "Are Recessions Good for Your Health?," The Quarterly Journal of Economics, Oxford University Press, vol. 115(2), pages 617-650.
    13. Jonathan A. Parker, 1999. "The Reaction of Household Consumption to Predictable Changes in Social Security Taxes," American Economic Review, American Economic Association, vol. 89(4), pages 959-973, September.
    14. Melvin Stephens & Takashi Unayama, 2011. "The Consumption Response to Seasonal Income: Evidence from Japanese Public Pension Benefits," American Economic Journal: Applied Economics, American Economic Association, vol. 3(4), pages 86-118, October.
    15. Shapiro, Matthew D & Slemrod, Joel, 1995. "Consumer Response to the Timing of Income: Evidence from a Change in Tax Withholding," American Economic Review, American Economic Association, vol. 85(1), pages 274-283, March.
    16. Daniel Sullivan & Till von Wachter, 2009. "Job Displacement and Mortality: An Analysis Using Administrative Data," The Quarterly Journal of Economics, Oxford University Press, vol. 124(3), pages 1265-1306.
    17. Ruhm, Christopher J., 2003. "Good times make you sick," Journal of Health Economics, Elsevier, vol. 22(4), pages 637-658, July.
    18. James P. Smith, 1999. "Healthy Bodies and Thick Wallets: The Dual Relation between Health and Economic Status," Journal of Economic Perspectives, American Economic Association, vol. 13(2), pages 145-166, Spring.
    19. Giovanni Mastrobuoni & Matthew Weinberg, 2009. "Heterogeneity in Intra-monthly Consumption Patterns, Self-Control, and Savings at Retirement," American Economic Journal: Economic Policy, American Economic Association, vol. 1(2), pages 163-189, August.
    20. Marcus Eliason & Donald Storrie, 2009. "Does Job Loss Shorten Life?," Journal of Human Resources, University of Wisconsin Press, vol. 44(2).
    21. Chris Riddell & Rosemarie Riddell, 2006. "Welfare Checks, Drug Consumption, and Health: Evidence from Vancouver Injection Drug Users," Journal of Human Resources, University of Wisconsin Press, vol. 41(1).
    22. Douglas L. Miller & Marianne E. Page & Ann Huff Stevens & Mateusz Filipski, 2009. "Why Are Recessions Good for Your Health?," American Economic Review, American Economic Association, vol. 99(2), pages 122-127, May.
    23. Gerdtham, Ulf-G. & Johannesson, Magnus, 2005. "Business cycles and mortality: results from Swedish microdata," Social Science & Medicine, Elsevier, vol. 60(1), pages 205-218, January.
    24. Evans, William N. & Moore, Timothy J., 2011. "The short-term mortality consequences of income receipt," Journal of Public Economics, Elsevier, vol. 95(11), pages 1410-1424.
    25. N/A, 2009. "On the Recession," Local Economy, London South Bank University, vol. 24(3), pages 253-253, May.
    26. Shapiro, Jesse M., 2005. "Is there a daily discount rate? Evidence from the food stamp nutrition cycle," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 303-325, February.
    27. repec:pri:cheawb:adriana_booms is not listed on IDEAS
    28. Marcus Eliason & Donald Storrie, 2006. "Lasting or Latent Scars? Swedish Evidence on the Long-Term Effects of Job Displacement," Journal of Labor Economics, University of Chicago Press, vol. 24(4), pages 831-856, October.
    29. Tal Gross & Jeremy Tobacman, 2014. "Dangerous Liquidity and the Demand for Health Care: Evidence from the 2008 Stimulus Payments," Journal of Human Resources, University of Wisconsin Press, vol. 49(2), pages 424-445.
    30. Stephens Melvin, 2006. "Paycheque Receipt and the Timing of Consumption," Economic Journal, Royal Economic Society, vol. 116(513), pages 680-701, July.
    31. Neumayer, Eric, 2004. "Recessions lower (some) mortality rates:: evidence from Germany," Social Science & Medicine, Elsevier, vol. 58(6), pages 1037-1047, March.
    32. Nicholas S. Souleles, 1999. "The Response of Household Consumption to Income Tax Refunds," American Economic Review, American Economic Association, vol. 89(4), pages 947-958, September.
    33. Verheul, G. & Singer, S.M. & Christenson, J.M., 1997. "Mortality and Morbidity Associated with the Distribution of Monthly Welfare Payments," Centre for Health Services and Policy Research 97:4d, University of British Columbia - Centre for Health Services and Policy Research..
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Frederik Plesner Lyngse, 2020. "Liquidity Constraints and Demand for Healthcare: Evidence from Danish Welfare Recipients," Papers 2010.14651, arXiv.org.
    2. Daniel Avdic & Martin Karlsson, 2017. "Growth in Earnings and Health: Nothing is as Practical as a Good Theory," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63(4), pages 777-787, December.
    3. Cuffe, Harold E. & Gibbs, Christopher G., 2017. "The effect of payday lending restrictions on liquor sales," Journal of Banking & Finance, Elsevier, vol. 85(C), pages 132-145.
    4. Cristina Borra & Ana Costa-Ramon & Libertad González & Almudena Sevilla-Sanz, 2021. "The Causal Effect of an Income Shock on Children’s Human Capital," Working Papers 1272, Barcelona Graduate School of Economics.
    5. Frederik Plesner Lyngse, 2020. "Liquidity Constraints and Demand for Healthcare: Evidence from Danish Welfare Recipients," CEBI working paper series 20-28, University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI).
    6. UNAYAMA Takashi & KOMURA Norihiro & HATTORI Takahiro, 2021. "Impacts of Cash Transfers on Consumption during the COVID-19 Pandemic: Evidence from Japanese Special Cash Payment (Japanese)," Discussion Papers (Japanese) 21022, Research Institute of Economy, Trade and Industry (RIETI).
    7. Moshe A. Milevsky, 2018. "Swimming with Wealthy Sharks: Longevity, Volatility and the Value of Risk Pooling," Papers 1811.11326, arXiv.org.
    8. Zizza, Roberta & Adamopoulou, Effrosyni, 2017. "Regular versus lump-sum payments in union contracts and household consumption," Working Paper Series 2013, European Central Bank.
    9. Todd, Jessica E. & Gregory, Christian, 2018. "Changes in Supplemental Nutrition Assistance Program real benefits and daily caloric intake among adults," Food Policy, Elsevier, vol. 79(C), pages 111-120.
    10. Inés Berniell, 2018. "Pay Cycles: Individual and Aggregate Effects of Paycheck Frequency," CEDLAS, Working Papers 0221, CEDLAS, Universidad Nacional de La Plata.
    11. BERNIELL, Inés, 2016. "Waiting for the paycheck : individual and aggregate effects of wage payment," Economics Working Papers MWP2016/05, European University Institute.

    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. Evans, William N. & Moore, Timothy J., 2011. "The short-term mortality consequences of income receipt," Journal of Public Economics, Elsevier, vol. 95(11), pages 1410-1424.
    2. William N. Evans & Timothy J. Moore, 2009. "Liquidity, Activity, Mortality," NBER Working Papers 15310, National Bureau of Economic Research, Inc.
    3. Fuchs-Schündeln, N. & Hassan, T.A., 2016. "Natural Experiments in Macroeconomics," Handbook of Macroeconomics, in: J. B. Taylor & Harald Uhlig (ed.), Handbook of Macroeconomics, edition 1, volume 2, chapter 0, pages 923-1012, Elsevier.
    4. Frederik Plesner Lyngse, 2020. "Liquidity Constraints and Demand for Healthcare: Evidence from Danish Welfare Recipients," Papers 2010.14651, arXiv.org.
    5. Frederik Plesner Lyngse, 2020. "Liquidity Constraints and Demand for Healthcare: Evidence from Danish Welfare Recipients," CEBI working paper series 20-28, University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI).
    6. Lídia Farré & Francesco Fasani & Hannes Mueller, 2018. "Feeling useless: the effect of unemployment on mental health in the Great Recession," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-34, December.
    7. Venke Furre Haaland & Kjetil Telle, 2013. "Pro-cyclical mortality. Evidence from Norway," Discussion Papers 766, Statistics Norway, Research Department.
    8. Ruhm, Christopher J., 2015. "Recessions, healthy no more?," Journal of Health Economics, Elsevier, vol. 42(C), pages 17-28.
    9. Bassanini, Andrea & Caroli, Eve, 2014. "Is work bad for health? The role of constraint vs choice," CEPREMAP Working Papers (Docweb) 1402, CEPREMAP.
    10. repec:dau:papers:123456789/12483 is not listed on IDEAS
    11. Ariizumi, Hideki & Schirle, Tammy, 2012. "Are recessions really good for your health? Evidence from Canada," Social Science & Medicine, Elsevier, vol. 74(8), pages 1224-1231.
    12. Maclean, Johanna Catherine, 2013. "The health effects of leaving school in a bad economy," Journal of Health Economics, Elsevier, vol. 32(5), pages 951-964.
    13. Dave, Dhaval M. & Kelly, Inas Rashad, 2012. "How does the business cycle affect eating habits?," Social Science & Medicine, Elsevier, vol. 74(2), pages 254-262.
    14. Matthew Lang & T. Clay McManus & Georg Schaur, 2019. "The effects of import competition on health in the local economy," Health Economics, John Wiley & Sons, Ltd., vol. 28(1), pages 44-56, January.
    15. Inés Berniell, 2018. "Pay Cycles: Individual and Aggregate Effects of Paycheck Frequency," CEDLAS, Working Papers 0221, CEDLAS, Universidad Nacional de La Plata.
    16. Tapia Granados, José A., 2012. "Economic growth and health progress in England and Wales: 160 years of a changing relation," Social Science & Medicine, Elsevier, vol. 74(5), pages 688-695.
    17. Zizza, Roberta & Adamopoulou, Effrosyni, 2017. "Regular versus lump-sum payments in union contracts and household consumption," Working Paper Series 2013, European Central Bank.
    18. Haaland, Venke Furre & Telle, Kjetil, 2015. "Pro-cyclical mortality across socioeconomic groups and health status," Journal of Health Economics, Elsevier, vol. 39(C), pages 248-258.
    19. Aparicio, Ainoa & González, Libertad & Vall Castelló, Judit, 2020. "Newborn health and the business cycle: The role of birth order," Economics & Human Biology, Elsevier, vol. 37(C).
    20. Lindo, Jason M., 2015. "Aggregation and the estimated effects of economic conditions on health," Journal of Health Economics, Elsevier, vol. 40(C), pages 83-96.
    21. Dobkin, Carlos & Puller, Steven L., 2007. "The effects of government transfers on monthly cycles in drug abuse, hospitalization and mortality," Journal of Public Economics, Elsevier, vol. 91(11-12), pages 2137-2157, December.

    More about this item

    Keywords

    Income; Mortality; Health; Consumption; Liquidity constraints; Permanent income hypothesis;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

    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:eee:pubeco:v:131:y:2015:i:c:p:21-32. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.elsevier.com/locate/inca/505578 .

    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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505578 .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.