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The Intimate Link between Income Levels and Life Expectancy: Global Evidence from 213 Years

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  • Jetter, Michael

    (University of Western Australia)

  • Laudage, Sabine

    (University of Bayreuth)

  • Stadelmann, David

    (University of Bayreuth)

Abstract

Contrary to previous findings, we find a systematic and economically sizeable relationship between income levels and life expectancy in a panel dataset of 197 countries over 213 years. By itself, GDP/capita explains more than 64 percent of the variation in life expectancy. The Preston curve prevails, even when accounting for country- and time-fixed effects, country-specific time trends, and alternative control variables. Quantile regressions and instrumental variable estimations suggest this link to be persistent across different levels of life expectancy and unaffected by reverse causality. If policymakers want to prolong people's lives, economic growth appears to be the predominant medicine.

Suggested Citation

  • Jetter, Michael & Laudage, Sabine & Stadelmann, David, 2016. "The Intimate Link between Income Levels and Life Expectancy: Global Evidence from 213 Years," IZA Discussion Papers 10015, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp10015
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    Cited by:

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    2. Michael Cauvel & Miguel Alejandro Sanchez, 2023. "Life Expectancy and the Labor Share in the U.S," Working Papers PKWP2308, Post Keynesian Economics Society (PKES).
    3. Reiner Eichenberger & Rainer Hegselmann & David Savage & David Stadelmann & Benno Torgler, 2020. "Certified Corona-Immunity as a Resource and Strategy to Cope with Pandemic Costs," CREMA Working Paper Series 2020-03, Center for Research in Economics, Management and the Arts (CREMA).
    4. Peter A.G. van Bergeijk, 2021. "Pandemic Economics," Books, Edward Elgar Publishing, number 20401.
    5. Prados de la Escosura, Leandro, 2023. "Health, income, and the preston curve: A long view," Economics & Human Biology, Elsevier, vol. 48(C).
    6. Thibault, Emmanuel & Ponthieres, Grégory, 2023. "Life Expectancy, Income and Long-Term Care: The Preston Curve Reexamined," TSE Working Papers 23-1474, Toulouse School of Economics (TSE).
    7. Reiner Eichenberger & Rainer Hegselmann & David A. Savage & David Stadelmann & Benno Torgler, 2020. "Certified Coronavirus Immunity as a Resource and Strategy to Cope with Pandemic Costs," Kyklos, Wiley Blackwell, vol. 73(3), pages 464-474, August.
    8. Rosenberg, Molly & Beidelman, Erika & Chen, Xiwei & Canning, David & Kobayashi, Lindsay & Kahn, Kathleen & Pettifor, Audrey & Kabudula, Chodziwadziwa Whiteson, 2023. "The impact of a randomized cash transfer intervention on mortality of adult household members in rural South Africa, 2011–2022," Social Science & Medicine, Elsevier, vol. 324(C).

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    More about this item

    Keywords

    life expectancy; income levels; historical panel data; quantile regression analysis;
    All these keywords.

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health

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