The Impact of Austerity on Mortality and Life Expectancy

Yonatan Berman () and Tora Hovland ()
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Yonatan Berman: King's College London
Tora Hovland: London School of Economics

No 17853, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper studies the impact of austerity measures implemented by the UK government after 2010 on life expectancy and mortality. We combine administrative data sources to create a panel dataset spanning from 2002 to 2019. Using a difference-in-differences strategy, we estimate the effect of cuts to welfare benefits and changes in health expenditure on life expectancy and mortality rates. Our findings indicate that these austerity measures reduced life expectancy by 2.5 to 5 months by 2019. Women were nearly twice as affected as men. The primary driver of this trend is cuts to welfare benefits, although healthcare spending changes have a larger effect per pound spent. The results suggest that austerity policies caused a three-year setback in life expectancy progress between 2010 and 2019. This is equivalent to about 190,000 excess deaths, or 3 percent of all deaths. Taking into account the years of life lost, we conclude that the costs of austerity significantly exceeded the benefits derived from reduced public expenditure.

Keywords: public health; public economics; political economy; austerity; welfare programs (search for similar items in EconPapers)
JEL-codes: H53 I18 I38 P16 (search for similar items in EconPapers)
Date: 2025-04
New Economics Papers: this item is included in nep-dem, nep-hea, nep-his and nep-ltv
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