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Overview on Heterogeneity in Longevity and Pension Schemes

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  • Ron Lee
  • Miguel Sanchez-Romero

Abstract

Differences in life expectancy between high and low socioeconomic groups are often large and have widened in recent decades. In the United States, the differences may now be as large as ten to fourteen years. These longevity gaps strongly affect the actuarial fairness and progressivity of many public pension systems, raising the question of possible policy reforms to address this issue. This paper reviews the empirical literature on the longevity differences across socioeconomic groups and their impacts on lifetime benefits, considers how these impacts depend on four different pay-as-you-go pension structures (calibrated on the US case), and discusses some policy options.
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Suggested Citation

  • Ron Lee & Miguel Sanchez-Romero, 2019. "Overview on Heterogeneity in Longevity and Pension Schemes," World Bank Publications - Reports 31636, The World Bank Group.
    • Handle: RePEc:wbk:wboper:31636
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    References listed on IDEAS

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    1. Sinn, Hans-Werner, 2004. "The pay-as-you-go pension system as fertility insurance and an enforcement device," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1335-1357, July.
    2. Pierre PESTIEAU & Gregory PONTHIERE, 2016. "Longevity Variations and the Welfare State," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 82(2), pages 207-239, June.
    3. Sánchez-Romero, Miguel & Prskawetz, Alexia, 2017. "Redistributive effects of the US pension system among individuals with different life expectancy," The Journal of the Economics of Ageing, Elsevier, vol. 10(C), pages 51-74.
    4. Goldring, Thomas & Lange, Fabian & Richards-Shubik, Seth, 2016. "Testing for changes in the SES-mortality gradient when the distribution of education changes too," Journal of Health Economics, Elsevier, vol. 46(C), pages 120-130.
    5. Jennifer Montez & Robert Hummer & Mark Hayward, 2012. "Educational Attainment and Adult Mortality in the United States: A Systematic Analysis of Functional Form," Demography, Springer;Population Association of America (PAA), vol. 49(1), pages 315-336, February.
    6. Barry P. Bosworth & Gary Burtless & Kan Zhang, 2015. "Sources of Increasing Differential Mortality Among the Aged by Socioeconomic Status," Working Papers, Center for Retirement Research at Boston College wp2015-10, Center for Retirement Research.
    7. Adriana Lleras-Muney, 2005. "The Relationship Between Education and Adult Mortality in the United States," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(1), pages 189-221.
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    Cited by:

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    4. Barr, Nicholas, 2019. "Gender and family: conceptual overview," LSE Research Online Documents on Economics 101237, London School of Economics and Political Science, LSE Library.
    5. Shiyu Li & Shuanglin Lin, 2024. "Social security reforms, capital accumulation, and welfare: A notional defined contribution system vs a modified PAYG system," Journal of Population Economics, Springer;European Society for Population Economics, vol. 37(1), pages 1-34, March.

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