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Can public spending reduce mortality disparities? Findings from East Germany after reunification

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  • Vogt, Tobias C.
  • Kluge, Fanny A.

Abstract

Following the reunification of Germany, eastern Germans experienced large increases in life expectancy. The introduction of the West German welfare system was accompanied by mortality reductions, particularly for older East Germans. We use this natural experiment to investigate to what extent increased public social security transfers contributed to the rise in life expectancy. We find that every euro invested in East German pensions and health care yielded on average three hours of additional life expectancy. The rise in public spending was particularly beneficial for older age groups. Investments in health care were more beneficial for reducing all-cause mortality in the East. Still, investments in pensions were important for closing the life expectancy gap to West Germany. Our results suggest that public policy measures geared toward equalizing living standards can also help to narrow mortality differentials.

Suggested Citation

  • Vogt, Tobias C. & Kluge, Fanny A., 2015. "Can public spending reduce mortality disparities? Findings from East Germany after reunification," The Journal of the Economics of Ageing, Elsevier, vol. 5(C), pages 7-13.
    • Handle: RePEc:eee:joecag:v:5:y:2015:i:c:p:7-13
    DOI: 10.1016/j.jeoa.2014.09.001
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    4. Tobias Vogt & Alyson van Raalte & Pavel Grigoriev & Mikko Myrskylä, 2017. "The German East-West Mortality Difference: Two Crossovers Driven by Smoking," Demography, Springer;Population Association of America (PAA), vol. 54(3), pages 1051-1071, June.
    5. Otto Lenhart, 2017. "The Role of Economic Shocks on Health: Evidence from German Reunification," Southern Economic Journal, John Wiley & Sons, vol. 84(1), pages 275-296, July.
    6. Rok Hrzic & Tobias Vogt & Helmut Brand & Fanny Janssen, 2021. "The Short-Term Effects of European Integration on Mortality Convergence: A Case Study of European Union’s 2004 Enlargement," European Journal of Population, Springer;European Association for Population Studies, vol. 37(4), pages 909-931, November.
    7. Pavel Grigoriev & Markéta Pechholdová, 2017. "Health Convergence Between East and West Germany as Reflected in Long-Term Cause-Specific Mortality Trends: To What Extent was it Due to Reunification?," European Journal of Population, Springer;European Association for Population Studies, vol. 33(5), pages 701-731, December.

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