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Lifetime Earnings and Life Expectancy

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  • von Gaudecker, Hans-Martin

    (Mannheim Research Institute for the Economics of Aging)

  • Scholz, Rembrandt

    (Max Planck Institute for Demographic Research)

Abstract

We estimate remaining life expectancy at age 65 using a very large sample of male German pensioners. Our analysis is entirely nonparametric. Furthermore, the data enable us to compare life expectancy in eastern and western Germany conditional on a measure of socio-economic status. Our findings show a lower bound of almost fifty percent (six years) on the difference in remaining life expectancy between the lowest and the highest socio-economic group considered. Within groups, we find similar values for East and West. Our analysis contributes to the literature in several aspects. First, Germany is clearly underrepresented in differential mortality studies. Second, we are able to use a novel measure of lifetime earnings as a proxy for socio-economic status that remains valid for retired people. Third, the comparison of eastern and western Germany may provide some interesting insights for transformation countries.

Suggested Citation

  • von Gaudecker, Hans-Martin & Scholz, Rembrandt, 2006. "Lifetime Earnings and Life Expectancy," Sonderforschungsbereich 504 Publications 07-05, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
  • Handle: RePEc:xrs:sfbmaa:07-05
    Note: Financial support from the Deutsche Forschungsgemeinschaft, SFB 504, at the University of Mannheim, is gratefully acknowledged.
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    References listed on IDEAS

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    Cited by:

    1. Breyer Friedrich & Hupfeld Stefan, 2010. "On the Fairness of Early-Retirement Provisions," German Economic Review, De Gruyter, vol. 11(1), pages 60-77, February.
    2. René Böheim & Käthe Knittler & Helmut Mahringer, 2008. "Einfluss von Erwerbslaufbahn und Nachtschwerarbeit auf die Lebenserwartung. Sterberisiko der Männer der Kohorten 1924 bis 1949 in Österreich," WIFO Studies, WIFO, number 31719, February.
    3. Martin Salm, 2011. "The Effect of Pensions on Longevity: Evidence from Union Army Veterans," Economic Journal, Royal Economic Society, vol. 121(552), pages 595-619, May.
    4. Heidler, Matthias & Raffelhüschen, Bernd & Leifels, Arne, 2006. "Heterogenous life expectancy, adverse selection, and retirement behaviour," FZG Discussion Papers 13, University of Freiburg, Research Center for Generational Contracts (FZG).
    5. Lutz, Roman, 2006. "Was spricht eigentlich gegen eine private Arbeitslosenversicherung?," IAB-Discussion Paper 200624, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Ehrentraut, Oliver & Raffelhüschen, Bernd, 2008. "Demografischer Wandel und Betriebsrenten: Zur Berücksichtigung der Langlebigkeit bei der Anpassung von Direktzusagen," FZG Discussion Papers 25, University of Freiburg, Research Center for Generational Contracts (FZG).
    7. Ralf K. Himmelreicher & Hans-Martin von Gaudecker & Rembrandt D. Scholz, 2006. "Nutzungsmöglichkeiten von Daten der gesetzlichen Rentenversicherung über das Forschungsdatenzentrum der Rentenversicherung (FDZ-RV)," MPIDR Working Papers WP-2006-018, Max Planck Institute for Demographic Research, Rostock, Germany.

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    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • Z0 - Other Special Topics - - General

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