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Individual Uncertainty About Longevity

Author

Listed:
  • Brigitte Dormont

    () (Université Paris-Dauphine, PSL University, LEDa, Place du Maréchal de Lattre de Tassigny)

  • Anne-Laure Samson

    () (Université Paris-Dauphine, PSL University, LEDa, Place du Maréchal de Lattre de Tassigny)

  • Marc Fleurbaey

    () (Princeton University)

  • Stéphane Luchini

    () (CNRS & EHESS, GREQAM, Centre de la Vieille Charité)

  • Erik Schokkaert

    () (KU Leuven
    CORE, Université Catholique de Louvain)

Abstract

Abstract This article presents an assessment of individual uncertainty about longevity. A survey performed on 3,331 French people enables us to record several survival probabilities per individual. On this basis, we compute subjective life expectancies (SLE) and subjective uncertainty regarding longevity (SUL), the standard deviation of each individual’s subjective distribution of her or his own longevity. It is large and equal to more than 10 years for men and women. Its magnitude is comparable to the variability of longevity observed in life tables for individuals under 60, but it is smaller for those older than 60, which suggests use of private information by older respondents. Our econometric analysis confirms that individuals use private information—mainly their parents’ survival and longevity—to adjust their level of uncertainty. Finally, we find that SUL has a sizable impact, in addition to SLE, on risky behaviors: more uncertainty on longevity significantly decreases the probability of unhealthy lifestyles. Given that individual uncertainty about longevity affects prevention behavior, retirement decisions, and demand for long-term care insurance, these results have important implications for public policy concerning health care and retirement.

Suggested Citation

  • Brigitte Dormont & Anne-Laure Samson & Marc Fleurbaey & Stéphane Luchini & Erik Schokkaert, 2018. "Individual Uncertainty About Longevity," Demography, Springer;Population Association of America (PAA), vol. 55(5), pages 1829-1854, October.
  • Handle: RePEc:spr:demogr:v:55:y:2018:i:5:d:10.1007_s13524-018-0713-4
    DOI: 10.1007/s13524-018-0713-4
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    References listed on IDEAS

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    1. Adeline Delavande & Jinkook Lee & Seetha Menon, 2017. "Eliciting Survival Expectations of the Elderly in Low-Income Countries: Evidence From India," Demography, Springer;Population Association of America (PAA), vol. 54(2), pages 673-699, April.

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