IDEAS home Printed from https://ideas.repec.org/p/ioe/doctra/544.html
   My bibliography  Save this paper

Life Expectancy and Income Levels in Chile

Author

Listed:
  • Gonzalo Edwards
  • Raimundo Soto
  • Felipe Zurita

Abstract

We document that life expectancies at the age of retirement differ significantly by income levels and gender in Chile. Using a sample of over 500 thousand workers that retired under the annuity system, we find that, conditional on reaching retirement age, there is a three-year difference in life expectancy between the lower and higher income groups. Differences are similar for men and women. We also find that as income per capita in Chile expanded over the past three decades, poverty levels have decreased quite markedly among pensioners. The evidence on income distribution is less clear cut. While income inequality is lower for the new generations, it increases after retirement within each generation as the poor die younger than the rich workers. Gender differences are also noteworthy. First, income among women is less unequal than that of men at retirement age and afterwards. Second, income inequality among retired men progressively worsens over time, while among women it remains stagnant over time. Our results have important implications for welfare projections, the allocation of health subsidies among pensioners, and the structure and management of the reserves required to life-insurance companies.

Suggested Citation

  • Gonzalo Edwards & Raimundo Soto & Felipe Zurita, 2020. "Life Expectancy and Income Levels in Chile," Documentos de Trabajo 544, Instituto de Economia. Pontificia Universidad Católica de Chile..
  • Handle: RePEc:ioe:doctra:544
    as

    Download full text from publisher

    File URL: https://www.economia.uc.cl/docs/doctra/dt-544.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Angus S. Deaton & Christina Paxson, 2001. "Mortality, Education, Income, and Inequality among American Cohorts," NBER Chapters, in: Themes in the Economics of Aging, pages 129-170, National Bureau of Economic Research, Inc.
    2. Ann H. Stevens & Douglas L. Miller & Marianne E. Page & Mateusz Filipski, 2015. "The Best of Times, the Worst of Times: Understanding Pro-cyclical Mortality," American Economic Journal: Economic Policy, American Economic Association, vol. 7(4), pages 279-311, November.
    3. Luján Temporelli, Karina & Natividad Viego, Valentina, 2011. "Relación entre esperanza de vida e ingreso. Un análisis para América Latina y el Caribe," Revista Lecturas de Economía, Universidad de Antioquia, CIE, June.
    4. Rasmus Hoffmann & Hannes Kröger & Lasse Tarkiainen & Pekka Martikainen, 2019. "Dimensions of Social Stratification and Their Relation to Mortality: A Comparison Across Gender and Life Course Periods in Finland," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(1), pages 349-365, August.
    5. Hans Bloemen & Stefan Hochguertel & Jochem Zweerink, 2017. "The causal effect of retirement on mortality: Evidence from targeted incentives to retire early," Health Economics, John Wiley & Sons, Ltd., vol. 26(12), pages 204-218, December.
    6. Ayuso, Mercedes & Bravo, Jorge Miguel & Holzmann, Robert, 2016. "Addressing Longevity Heterogeneity in Pension Scheme Design and Reform," IZA Discussion Papers 10378, Institute of Labor Economics (IZA).
    7. James P. Smith, 2007. "The Impact of Socioeconomic Status on Health over the Life-Course," Journal of Human Resources, University of Wisconsin Press, vol. 42(4).
    8. Igor Fedotenkov & Pavel Derkachev, 2020. "Gender longevity gap and socioeconomic indicators in developed countries," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 47(1), pages 127-144, January.
    9. Wolfgang Lutz & Endale Kebede, 2018. "Education and Health: Redrawing the Preston Curve," Population and Development Review, The Population Council, Inc., vol. 44(2), pages 343-361, June.
    10. David Cutler & Angus Deaton & Adriana Lleras-Muney, 2006. "The Determinants of Mortality," Journal of Economic Perspectives, American Economic Association, vol. 20(3), pages 97-120, Summer.
    11. Hoffmann, Rasmus & Kröger, Hannes & Tarkiainen, Lasse & Martikainen, Pekka, 2019. "Dimensions of Social Stratification and Their Relation to Mortality: A Comparison Across Gender and Life Course Periods in Finland," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 145(1), pages 349-365.
    12. repec:pri:cheawb:deaton_paxson_mortality_cohorts.pdf is not listed on IDEAS
    13. Pamela Herd & Brian Goesling & James S. House, "undated". "Socioeconomic Position and Health: The Differential Effects of Education versus Income on the Onset versus Progression of Health Problems," Mathematica Policy Research Reports 441d34cf576545a8b8bd05ca7, Mathematica Policy Research.
    14. Sebnem Kalemli-Ozcan & David Weil, 2010. "Mortality change, the uncertainty effect, and retirement," Journal of Economic Growth, Springer, vol. 15(1), pages 65-91, March.
    15. van Doorslaer, Eddy & Wagstaff, Adam & Bleichrodt, Han & Calonge, Samuel & Gerdtham, Ulf-G. & Gerfin, Michael & Geurts, Jose & Gross, Lorna & Hakkinen, Unto & Leu, Robert E., 1997. "Income-related inequalities in health: some international comparisons," Journal of Health Economics, Elsevier, vol. 16(1), pages 93-112, February.
    16. Guillermo Alves & Matías Brum & Mijail Yapor, 2013. "Wage Inequality on the Rise: The Role of Workers’ Characteristics," Journal of Income Distribution, Ad libros publications inc., vol. 22(2), pages 99-123, June.
    17. repec:pri:cheawb:deaton_paxson_mortality_cohorts is not listed on IDEAS
    18. Norman Johnson & Paul Sorlie & Eric Backlund, 1999. "The impact of specific occupation on mortality in the U.S. National Longitudinal Mortality Study," Demography, Springer;Population Association of America (PAA), vol. 36(3), pages 355-367, August.
    19. Seaman, Rosie & Riffe, Tim & Leyland, Alastair H. & Popham, Frank & van Raalte, Alyson, 2019. "The increasing lifespan variation gradient by area-level deprivation: A decomposition analysis of Scotland 1981–2011," Social Science & Medicine, Elsevier, vol. 230(C), pages 147-157.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Edwards, Gonzalo & Soto, Raimundo & Zurita, Felipe, 2020. "Life expectancy at retirement and income levels in Chile," Research Department working papers 1624, CAF Development Bank Of Latinamerica.
    2. Owen O'Donnell & Eddy Van Doorslaer & Tom Van Ourti, 2013. "Health and Inequality," Tinbergen Institute Discussion Papers 13-170/V, Tinbergen Institute.
    3. Ana C. Gómez-Ugarte & Víctor M. García-Guerrero, 2023. "Inequality Crossroads of Mortality: Socioeconomic Disparities in Life Expectancy and Life Span in Mexico Between 1990 and 2015," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 42(4), pages 1-22, August.
    4. Dora L. Costa, 2015. "Health and the Economy in the United States from 1750 to the Present," Journal of Economic Literature, American Economic Association, vol. 53(3), pages 503-570, September.
    5. Weil, David N., 2014. "Health and Economic Growth," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 3, pages 623-682, Elsevier.
    6. Ryan Edwards, 2013. "The cost of uncertain life span," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(4), pages 1485-1522, October.
    7. Maite Blázquez Cuesta & Elena Cottini & Herrarte, A. (Ainhoa), 2012. "GINI DP 39: Socioeconomic Gradient in Health: How Important is Material Deprivation?," GINI Discussion Papers 39, AIAS, Amsterdam Institute for Advanced Labour Studies.
    8. Benedicte Apouey & Andrew E. Clark, 2015. "Winning Big but Feeling no Better? The Effect of Lottery Prizes on Physical and Mental Health," Health Economics, John Wiley & Sons, Ltd., vol. 24(5), pages 516-538, May.
    9. Apouey, Bénédicte & Geoffard, Pierre-Yves, 2013. "Family income and child health in the UK," Journal of Health Economics, Elsevier, vol. 32(4), pages 715-727.
    10. Daniel G. Sullivan & Till von Wachter, 2006. "Mortality, mass-layoffs, and career outcomes: an analysis using administrative data," Working Paper Series WP-06-21, Federal Reserve Bank of Chicago.
    11. Hannes Schwandt, 2018. "Wealth Shocks and Health Outcomes: Evidence from Stock Market Fluctuations," American Economic Journal: Applied Economics, American Economic Association, vol. 10(4), pages 349-377, October.
    12. repec:hal:pseose:halshs-00566789 is not listed on IDEAS
    13. David M. Cutler & Adriana Lleras-Muney, 2006. "Education and Health: Evaluating Theories and Evidence," NBER Working Papers 12352, National Bureau of Economic Research, Inc.
    14. Torben Heien Nielsen, 2016. "The Relationship Between Self‐Rated Health and Hospital Records," Health Economics, John Wiley & Sons, Ltd., vol. 25(4), pages 497-512, April.
    15. Jennifer M. Mellor & Jeffrey Milyo, 2002. "Income Inequality and Health Status in the United States: Evidence from the Current Population Survey," Journal of Human Resources, University of Wisconsin Press, vol. 37(3), pages 510-539.
    16. van Kippersluis, Hans & O'Donnell, Owen & van Doorslaer, Eddy & Van Ourti, Tom, 2010. "Socioeconomic differences in health over the life cycle in an Egalitarian country," Social Science & Medicine, Elsevier, vol. 70(3), pages 428-438, February.
    17. Bhalotra, Sonia, 2010. "Fatal fluctuations? Cyclicality in infant mortality in India," Journal of Development Economics, Elsevier, vol. 93(1), pages 7-19, September.
    18. Grzegorz Bulczak & Alexi Gugushvili & Olga Zelinska, 2022. "How are social origin, destination and mobility linked to physical, mental, and self-rated health? Evidence from the United States," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(5), pages 3555-3585, October.
    19. Nicolas R. Ziebarth, 2018. "Social Insurance and Health," Contributions to Economic Analysis, in: Health Econometrics, volume 127, pages 57-84, Emerald Group Publishing Limited.
    20. Itay Saporta-Eksten & Ity Shurtz & Sarit Weisburd, 2021. "Social Security, Labor Supply, and Health of Older Workers: Quasi-Experimental Evidence from a Large Reform [Identification and Estimation of Local Average Treatment Effects]," Journal of the European Economic Association, European Economic Association, vol. 19(4), pages 2168-2208.
    21. Maddalena Cavicchioli & Barbara Pistoresi, 2020. "Unfolding the relationship between mortality, economic fluctuations, and health in Italy," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 21(3), pages 351-362, April.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ioe:doctra:544. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jaime Casassus (email available below). General contact details of provider: https://edirc.repec.org/data/iepuccl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.