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Should income transfers be targeted or universal? Insights from public pension influences on elderly mortality in Canada, 1921–1966

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  • J.C. Herbert Emery
  • Jesse A. Matheson

Abstract

. We investigate the impact of Canada's means‐tested and universal public pension programs on the mortality rates of age groups eligible for pension benefits for the period 1921–1966. We find that only the universal program significantly reduced pension eligible age group mortality rates. The implied social value of the mortality risk reduction from this program is one‐tenth of the value per statistical life associated with contemporary government policy, meaning that Canadians did not need to place a high value on the life of a senior to justify the higher cost of the universal program. JEL classification: I3, J1 On analyse l’impact des régimes de rentes universels et de ceux qui impliquent une enquête sur la situation de fortune sur les taux de mortalité des groupes d’âge éligibles aux prestations de retraite pour la période 1921–1966. On découvre que seulement les régimes universels réduisent de manière significative les taux de mortalité des groupes d’âge éligibles. La valeur sociale implicite de la réduction du risque de mortalité attribuable à un tel régime est égale à un dixième de la valeur de la vie statistique associée aux politiques contemporaines des gouvernements. Voilà qui signifie que les Canadiens n’ont pas à attribuer une grande valeur à la vie d’un aîné pour justifier le coût plus élevé du programme universel.

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  • J.C. Herbert Emery & Jesse A. Matheson, 2012. "Should income transfers be targeted or universal? Insights from public pension influences on elderly mortality in Canada, 1921–1966," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 45(1), pages 247-269, February.
    • Handle: RePEc:wly:canjec:v:45:y:2012:i:1:p:247-269
    DOI: 10.1111/j.1540-5982.2011.01694.x
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    Cited by:

    1. Littlewood, Michael, 2014. "Ageing populations, retirement incomes and public policy: what really matters," MPRA Paper 56232, University Library of Munich, Germany.
    2. Jose Valderrama & Javier Olivera, 2023. "The effects of social pensions on mortality among the extreme poor elderly," LISER Working Paper Series 2023-05, Luxembourg Institute of Socio-Economic Research (LISER).
    3. J.C. Herbert Emery & Jesse A. Matheson, 2012. "Should income transfers be targeted or universal? Insights from public pension influences on elderly mortality in Canada, 1921-1966," Canadian Journal of Economics, Canadian Economics Association, vol. 45(1), pages 247-269, February.
    4. 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.
    5. Jäger, Philipp, 2019. "The introduction of social pensions and elderly mortality: Evidence 1870-1939," Ruhr Economic Papers 808, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    6. Tobias Pfutze & Carlos Rodríguez-Castelán, 2019. "Can a Small Social Pension Promote Labor Force Participation? Evidence from the Colombia Mayor Program," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2019), pages 111-154, October.

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    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • J1 - Labor and Demographic Economics - - Demographic Economics

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