The Effect of Subjective Survival Probabilities on Retirement and Wealth in the United States
David Bloom (),
David Canning (),
Michael Moore () and
Additional contact information
David Bloom: Harvard School of Public Health
David Canning: Harvard School of Public Health
PGDA Working Papers from Program on the Global Demography of Aging
We explore the proposition that expected longevity affects retirement decisions and accumulated wealth using micro data drawn from the Health and Retirement Study for the United States. We use data on a person’s subjective probability of survival to age 75 as a proxy for their prospective lifespan. In order to control for the presence of measurement error and focal points in responses, as well as reverse causality, we instrument subjective survival probabilities using information on current age, or age at death, of the respondent’s parents. Our estimates indicate that increased subjective probabilities of survival result in increased household wealth among couples, with no effect on the length of the working life. These findings are consistent with the view that retirement decisions are driven by institutional constraints and incentives and that a longer expected lifespan leads to increased wealth accumulation.
Keywords: survival; health; longevity; retirement; wealth (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-age
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (9) Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.hsph.harvard.edu/pgda/WorkingPapers/2006/PGDA_WP_17.pdf [301 Moved Permanently]--> https://www.hsph.harvard.edu/pgda/WorkingPapers/2006/PGDA_WP_17.pdf)
Working Paper: The Effect of Subjective Survival Probabilities on Retirement and Wealth in the United States (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:gdm:wpaper:1706
Access Statistics for this paper
More papers in PGDA Working Papers from Program on the Global Demography of Aging
Series data maintained by Cinzia Smothers (). This e-mail address is bad, please contact .