IDEAS home Printed from https://ideas.repec.org/a/eee/pubeco/v250y2025ics0047272725001884.html

Short-term mortality and healthcare utilization consequences of pension income receipt: Evidence from South Korea

Author

Listed:
  • Jeon, Mimi
  • Kim, Seonghoon
  • Koh, Kanghyock

Abstract

We examine short-term consequences of pension income receipt on mortality and healthcare utilization within the monthly payment cycle. Using the national death registry data of South Korea, we document that the mortality rate decreases by 1.2–1.4 percent in the week of the disbursement date. The mortality-reducing effects are larger for causes of death that could have been avoided through timely and effective healthcare interventions. Using healthcare claims data, we document that the number of hospital admissions increases during the disbursement week. We provide suggestive evidence of greater mortality-reducing effects from a smaller but more frequent disbursement than from a monthly disbursement.

Suggested Citation

  • Jeon, Mimi & Kim, Seonghoon & Koh, Kanghyock, 2025. "Short-term mortality and healthcare utilization consequences of pension income receipt: Evidence from South Korea," Journal of Public Economics, Elsevier, vol. 250(C).
  • Handle: RePEc:eee:pubeco:v:250:y:2025:i:c:s0047272725001884
    DOI: 10.1016/j.jpubeco.2025.105490
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0047272725001884
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jpubeco.2025.105490?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

    for a different version of it.

    References listed on IDEAS

    as
    1. Seonghoon Kim & Kanghyock Koh, 2020. "Does Early Access To Pension Wealth Improve Health?," Economic Inquiry, Western Economic Association International, vol. 58(4), pages 1783-1794, October.
    2. 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.
    3. Chulhee Lee & Kyeongbae Kim, 2017. "Changing Relationship between Unemployment and Mortality in South Korea," Health Economics, John Wiley & Sons, Ltd., vol. 26(12), pages 1630-1636, December.
    4. 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).
    5. Cotti, Chad D. & Gordanier, John M. & Ozturk, Orgul D., 2020. "Hunger pains? SNAP timing and emergency room visits," Journal of Health Economics, Elsevier, vol. 71(C).
    6. Peter Ganong & Pascal Noel, 2019. "Consumer Spending during Unemployment: Positive and Normative Implications," American Economic Review, American Economic Association, vol. 109(7), pages 2383-2424, July.
    7. 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.
    8. David Cesarini & Erik Lindqvist & Robert Östling & Björn Wallace, 2016. "Wealth, Health, and Child Development: Evidence from Administrative Data on Swedish Lottery Players," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(2), pages 687-738.
    9. 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.
    10. Kim, Seonghoon & Koh, Kanghyock, 2021. "The effects of income on health: Evidence from lottery wins in Singapore," Journal of Health Economics, Elsevier, vol. 76(C).
    11. Daron Acemoglu & Amy Finkelstein & Matthew J. Notowidigdo, 2013. "Income and Health Spending: Evidence from Oil Price Shocks," The Review of Economics and Statistics, MIT Press, vol. 95(4), pages 1079-1095, October.
    12. Y. Natalia Alfonso & Guiru Ding & David Bishai, 2016. "Income Elasticity of Vaccines Spending versus General Healthcare Spending," Health Economics, John Wiley & Sons, Ltd., vol. 25(7), pages 860-872, July.
    13. Kanghyock Koh & Hyunjoo Yang, 2021. "Social Insurance in an Aging Population: Impacts of a Government Transfer Program in South Korea," Economic Development and Cultural Change, University of Chicago Press, vol. 69(4), pages 1301-1322.
    14. 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.
    15. 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.
    16. Emma Aguila & Arie Kapteyn & Francisco Perez-Arce, 2017. "Consumption Smoothing and Frequency of Benefit Payments of Cash Transfer Programs," American Economic Review, American Economic Association, vol. 107(5), pages 430-435, May.
    17. 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.
    18. Cochrane, John H, 1989. "The Sensitivity of Tests of the Intertemporal Allocation of Consumption to Near-Rational Alternatives," American Economic Review, American Economic Association, vol. 79(3), pages 319-337, June.
    19. Christopher J. Ruhm, 2000. "Are Recessions Good for Your Health?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(2), pages 617-650.
    20. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-255, March-Apr.
    21. Zarek C. Brot-Goldberg & Amitabh Chandra & Benjamin R. Handel & Jonathan T. Kolstad, 2017. "What does a Deductible Do? The Impact of Cost-Sharing on Health Care Prices, Quantities, and Spending Dynamics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(3), pages 1261-1318.
    22. 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.
    23. Amitabh Chandra & Jonathan Gruber & Robin McKnight, 2010. "Patient Cost-Sharing and Hospitalization Offsets in the Elderly," American Economic Review, American Economic Association, vol. 100(1), pages 193-213, March.
    24. William N. Evans & Craig L. Garthwaite, 2014. "Giving Mom a Break: The Impact of Higher EITC Payments on Maternal Health," American Economic Journal: Economic Policy, American Economic Association, vol. 6(2), pages 258-290, May.
    25. Kim, Seonghoon & Koh, Kanghyock & Lyou, Wonjun, 2023. "Spend as you were told: Evidence from labeled COVID-19 stimulus payments in South Korea," Journal of Public Economics, Elsevier, vol. 221(C).
    26. Frijters, Paul & Haisken-DeNew, John P. & Shields, Michael A., 2005. "The causal effect of income on health: Evidence from German reunification," Journal of Health Economics, Elsevier, vol. 24(5), pages 997-1017, September.
    27. Tal Gross & Timothy J. Layton & Daniel Prinz, 2022. "The Liquidity Sensitivity of Healthcare Consumption: Evidence from Social Security Payments," American Economic Review: Insights, American Economic Association, vol. 4(2), pages 175-190, June.
    28. Johannes Haushofer & Jeremy Shapiro, 2016. "The Short-term Impact of Unconditional Cash Transfers to the Poor: ExperimentalEvidence from Kenya," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(4), pages 1973-2042.
    29. 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.
    30. Katherine Baicker & Sendhil Mullainathan & Joshua Schwartzstein, 2015. "Behavioral Hazard in Health Insurance," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(4), pages 1623-1667.
    31. Jiafeng Chen & Jonathan Roth, 2024. "Logs with Zeros? Some Problems and Solutions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 139(2), pages 891-936.
    32. Amy Finkelstein & Matthew J Notowidigdo & Frank Schilbach & Jonathan Zhang, 2025. "Lives Versus Livelihoods: The Impact of the Great Recession on Mortality and Welfare," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 140(3), pages 2269-2328.
    33. Taehyun Ahn & Chung Gu Chee & Seonghoon Kim, 2021. "The Evolution of Income Risk and Consumption Insurance in South Korea over the Last Two Decades," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 83(2), pages 328-351, April.
    34. Amitabh Chandra & Evan Flack & Ziad Obermeyer, 2024. "The Health Costs of Cost Sharing," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 139(4), pages 2037-2082.
    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. Ibuka, Yoko & Hamaaki, Junya, 2025. "Income receipt, economic activities, and health: Evidence from ambulance transport patterns," Journal of Health Economics, Elsevier, vol. 100(C).
    2. 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.
    3. Frederik Plesner Lyngse, 2020. "Liquidity Constraints and Demand for Healthcare: Evidence from Danish Welfare Recipients," Papers 2010.14651, arXiv.org.
    4. 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).
    5. Kim, Seonghoon & Koh, Kanghyock, 2021. "The effects of income on health: Evidence from lottery wins in Singapore," Journal of Health Economics, Elsevier, vol. 76(C).
    6. Takashi UNAYAMA & Norihiro KOMURA & Takahiro HATTORI, 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. Inés Berniell, 2018. "Pay Cycles: Individual and Aggregate Effects of Paycheck Frequency," CEDLAS, Working Papers 0221, CEDLAS, Universidad Nacional de La Plata.
    8. Terence C. Cheng & Joan Costa-Font & Nattavudh Powdthavee, 2018. "Do You Have to Win It to Fix It? A Longitudinal Study of Lottery Winners and Their Health-Care Demand," American Journal of Health Economics, University of Chicago Press, vol. 4(1), pages 26-50, Winter.
    9. Timothy K. M. Beatty & Joakim A. Weill, 2024. "Social Security and High-Frequency Labor Supply: Evidence from Uber Drivers," Finance and Economics Discussion Series 2024-079, Board of Governors of the Federal Reserve System (U.S.).
    10. Brett Watson & Mouhcine Guettabi & Matthew Reimer, 2020. "Universal Cash and Crime," The Review of Economics and Statistics, MIT Press, vol. 102(4), pages 678-689, October.
    11. 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.
    12. William N. Evans & Timothy J. Moore, 2009. "Liquidity, Activity, Mortality," NBER Working Papers 15310, National Bureau of Economic Research, Inc.
    13. Koh, Kanghyock & Han, Hyojin, 2023. "Stock market risk and suicide," Pacific-Basin Finance Journal, Elsevier, vol. 78(C).
    14. Jia Dan & Xu Pai, 2025. "Rethinking Cost-Sharing Policies: Enhancing Chronic Disease Management for Disadvantaged Populations," Papers 2509.09223, arXiv.org.
    15. 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.
    16. Chen Lian, 2021. "Mistakes in Future Consumption, High MPCs Now," NBER Working Papers 29517, National Bureau of Economic Research, Inc.
    17. BERNIELL, Inés, 2016. "Waiting for the paycheck : individual and aggregate effects of wage payment," Economics Working Papers MWP2016/05, European University Institute.
    18. Adriana Lleras‐Muney, 2022. "Education and income gradients in longevity: The role of policy," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(1), pages 5-37, February.
    19. Cotti, Chad D. & Gordanier, John M. & Ozturk, Orgul D., 2020. "Hunger pains? SNAP timing and emergency room visits," Journal of Health Economics, Elsevier, vol. 71(C).
    20. Arna Vardardottir & Michaela Pagel, 2016. "The Liquid Hand-to-Mouth: Evidence from a Personal Finance Management Software," 2016 Meeting Papers 789, Society for Economic Dynamics.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • 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:250:y:2025:i:c:s0047272725001884. 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: 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. RePEc uses bibliographic data supplied by the respective publishers.