Heterogeneity in Expected Longevities

Josep Pijoan-Mas
Authors registered in the RePEc Author Service: José-Víctor Ríos-Rull

No 9123, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We develop a new methodology to compute di fferences in the expected longevity of individuals who are in different socioeconomic groups at age 50. We deal with the two main problems associated with the standard use of life expectancy: that people's socioeconomic characteristics evolve over the life cycle and that there is a time trend that reduces mortality over time. Using HRS data we uncover an enormous amount of heterogeneity in expected longevities between individuals in di fferent socioeconomic groups. Additionally, our analysis allows us to provide an answer to the old question of how health protecting are education, wealth and marital status. To do so, we decompose the longevity di fferentials into differences in health at age 50, differences in the evolution of health with age, and di fferences in mortality conditional on health. Remarkably, the latter is the least important for most socioeconomic characteristics. In particular, education and wealth are health protecting but have very little impact on two-year mortality rates conditional on health. Finally, we document an increasing time trend of the socioeconomic gradient of longevity in the period 1992-2008, and a likely increase in the socioeconomic gradient of mortality rates in the near future. Last but not least, we show that the longevity di fferences that we find have welfare implications that dwarf the di fferences in consumption accruing to people in di efferent socioeconomic groups.

Keywords: Heterogeneity in mortality rates; Inequality in health; Life expectancies (search for similar items in EconPapers)
JEL-codes: I14 I24 J12 J14 (search for similar items in EconPapers)
Date: 2012-09
New Economics Papers: this item is included in nep-dem
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://cepr.org/publications/DP9123 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: Heterogeneity in Expected Longevities (2014)
Working Paper: Heterogeneity in Expected Longevities (2012)
Working Paper: Heterogeneity in expected longevities (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:9123

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP9123

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().