The lost ones: the opportunities and outcomes of non-college-educated Americans born in the 1960s
Margherita Borella (),
Mariacristina De Nardi () and
Fang Yang ()
No 2019-022, Working Papers from Human Capital and Economic Opportunity Working Group
White, non-college-educated Americans born in the 1960s face shorter life expectancies, higher medical expenses, and lower wages per unit of human capital compared with those born in the 1940s, and men’s wages declined more than women’s. After documenting these changes, we use a life-cycle model of couples and singles to evaluate their effects. The drop in wages depressed the labor supply of men and increased that of women, especially in married couples. Their shorter life expectancy reduced their retirement savings but the increase in out-of-pocket medical expenses increased them by more. Welfare losses, measured as a one-time asset compensation, are 12.5%, 8%, and 7.2% of the present discounted value of earnings for single men, couples, and single women, respectively. Lower wages explain 47-58% of these losses, shorter life expectancies 25-34%, and higher medical expenses account for the rest.
Keywords: education; Health; wage gap; welfare losses; life expectancy (search for similar items in EconPapers)
JEL-codes: E21 H31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-age, nep-dge, nep-his, nep-lma and nep-mac
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http://humcap.uchicago.edu/RePEc/hka/wpaper/Borell ... 19_the-lost-ones.pdf First version, March 18, 2019 (application/pdf)
Working Paper: The lost ones: the opportunities and outcomes of non-college educated Americans born in the 1960s (2019)
Working Paper: The Lost Ones: The Opportunities and Outcomes of Non-College-Educated Americans Born in the 1960s (2019)
Working Paper: The Lost Ones: the Opportunities and Outcomes of Non-College Educated Americans Born in the 1960s (2019)
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