IDEAS home Printed from https://ideas.repec.org/a/spr/demogr/v50y2013i1p181-206.html
   My bibliography  Save this article

The Association Between Individual Income and Remaining Life Expectancy at the Age of 65 in the Netherlands

Author

Listed:
  • Adriaan Kalwij
  • Rob Alessie
  • Marike Knoef

Abstract

This article quantifies the association between individual income and remaining life expectancy at the statutory retirement age (65) in the Netherlands. For this purpose, we estimate a mortality risk model using a large administrative data set that covers the 1996–2007 period. Besides age and marital status, the model includes as covariates individual and spouse’s income as well as a random individual specific effect. It thus allows for dynamic selection based on both observed and unobserved characteristics. We find that conditional on marital status, individual income is about equally strong and negatively associated with mortality risk for men and women and that spouse’s income is only weakly associated with mortality risk for women. For both men and women, we quantify remaining life expectancy at age 65 for low-income individuals as approximately 2.5 years less than that for high-income individuals. Copyright Population Association of America 2013

Suggested Citation

  • Adriaan Kalwij & Rob Alessie & Marike Knoef, 2013. "The Association Between Individual Income and Remaining Life Expectancy at the Age of 65 in the Netherlands," Demography, Springer;Population Association of America (PAA), vol. 50(1), pages 181-206, February.
    • Handle: RePEc:spr:demogr:v:50:y:2013:i:1:p:181-206
    DOI: 10.1007/s13524-012-0139-3
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s13524-012-0139-3
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s13524-012-0139-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Stephen V. Cameron & James J. Heckman, 1998. "Life Cycle Schooling and Dynamic Selection Bias: Models and Evidence for Five Cohorts of American Males," Journal of Political Economy, University of Chicago Press, vol. 106(2), pages 262-333, April.
    2. Gerard J. van den Berg & Maarten Lindeboom & France Portrait, 2006. "Economic Conditions Early in Life and Individual Mortality," American Economic Review, American Economic Association, vol. 96(1), pages 290-302, March.
    3. Mårten Palme & Sofia Sandgren, 2008. "Parental Income, Lifetime Income, and Mortality," Journal of the European Economic Association, MIT Press, vol. 6(4), pages 890-911, June.
    4. András Simonovits, 2006. "Optimal Design of Pension Rule with Flexible Retirement: The Two-Type Case," Journal of Economics, Springer, vol. 89(3), pages 197-222, December.
    5. repec:pri:cheawb:case_paxson_economic_status_paper is not listed on IDEAS
    6. Edward Whitehouse & Asghar Zaidi, 2008. "Socio-Economic Differences in Mortality: Implications for Pensions Policy," OECD Social, Employment and Migration Working Papers 71, OECD Publishing.
    7. Erikson, Robert & Torssander, Jenny, 2009. "Marital Partner and Mortality: The Effects of the Social Positions of Both Spouses," Working Paper Series 5/2009, Stockholm University, Swedish Institute for Social Research.
    8. Hans van Kippersluis, & Owen O’Donnell & Eddy van Doorslaer, 2011. "Long-Run Returns to Education: Does Schooling Lead to an Extended Old Age?," Journal of Human Resources, University of Wisconsin Press, vol. 46(4), pages 695-721.
    9. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    10. repec:pri:cheawb:case_paxson_economic_status_paper.pdf is not listed on IDEAS
    11. David E. Bloom & David Canning & Bryan Graham, 2003. "Longevity and Life‐cycle Savings," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(3), pages 319-338, September.
    12. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-255, March-Apr.
    13. Van den Berg, Gerard J., 2001. "Duration models: specification, identification and multiple durations," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 55, pages 3381-3460, Elsevier.
    14. Grossman, Michael, 2000. "The human capital model," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 7, pages 347-408, Elsevier.
    15. Cameron,A. Colin & Trivedi,Pravin K., 2005. "Microeconometrics," Cambridge Books, Cambridge University Press, number 9780521848053, January.
    16. Case, Anne & Fertig, Angela & Paxson, Christina, 2005. "The lasting impact of childhood health and circumstance," Journal of Health Economics, Elsevier, vol. 24(2), pages 365-389, March.
    17. James P. Smith, 1999. "Healthy Bodies and Thick Wallets: The Dual Relation between Health and Economic Status," Journal of Economic Perspectives, American Economic Association, vol. 13(2), pages 145-166, Spring.
    18. Marike Knoef & Rob Alessie & Adriaan Kalwij, 2013. "Changes in the Income Distribution of the Dutch Elderly between 1989 and 2020: a Dynamic Microsimulation," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 59(3), pages 460-485, September.
    19. M. Flores & A.S. Kalwij, 2011. "The associations between early life circumstances and later life health and employment in the Netherlands and Spain," Working Papers 11-10, Utrecht School of Economics.
    20. Michael D. Hurd & Daniel McFadden & Angela Merrill, 2001. "Predictors of Mortality among the Elderly," NBER Chapters, in: Themes in the Economics of Aging, pages 171-198, National Bureau of Economic Research, Inc.
    21. Mikael Lindahl, 2005. "Estimating the Effect of Income on Health and Mortality Using Lottery Prizes as an Exogenous Source of Variation in Income," Journal of Human Resources, University of Wisconsin Press, vol. 40(1).
    22. Orazio P. Attanasio & Hilary Williamson Hoynes, 2000. "Differential Mortality and Wealth Accumulation," Journal of Human Resources, University of Wisconsin Press, vol. 35(1), pages 1-29.
    23. Hupfeld, Stefan, 2009. "Rich and healthy--better than poor and sick?: An empirical analysis of income, health, and the duration of the pension benefit spell," Journal of Health Economics, Elsevier, vol. 28(2), pages 427-443, March.
    24. Orazio P. Attanasio & Carl Emmerson, 2003. "Mortality, Health Status, and Wealth," Journal of the European Economic Association, MIT Press, vol. 1(4), pages 821-850, June.
    25. Jeffrey Brown, 2002. "Differential Mortality and the Value of Individual Account Retirement Annuities," NBER Chapters, in: The Distributional Aspects of Social Security and Social Security Reform, pages 401-446, National Bureau of Economic Research, Inc.
    26. Daniel Sullivan & Till von Wachter, 2009. "Average Earnings and Long-Term Mortality: Evidence from Administrative Data," American Economic Review, American Economic Association, vol. 99(2), pages 133-138, May.
    27. Stephen V. Cameron & James J. Heckman, 1998. "Life Cycle Schooling and Dynamic Selection Bias: Models and Evidence for Five Cohorts," NBER Working Papers 6385, National Bureau of Economic Research, Inc.
    28. Kunst, A.E. & Mackenbach, J.P., 1994. "The size of mortality differences associated with educational level in nine industrialized countries," American Journal of Public Health, American Public Health Association, vol. 84(6), pages 932-937.
    29. Anne Case & Darren Lubotsky & Christina Paxson, 2002. "Economic Status and Health in Childhood: The Origins of the Gradient," American Economic Review, American Economic Association, vol. 92(5), pages 1308-1334, December.
    30. Anton E. Kunst & Vivian Bos & Otto Andersen & Mario Cardano & Giuseppe Costa & Seeromanie Harding & Örjan Hemström & Richard Layte & Enrique Regidor & Alison Reid & Paula Santana & Tapani Valkonen & J, 2004. "Monitoring of trends in socioeconomic inequalities in mortality," Demographic Research Special Collections, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 2(9), pages 229-254.
    31. Jan Bonenkamp, 2007. "Measuring lifetime redistribution in Dutch occupational pensions," CPB Discussion Paper 81, CPB Netherlands Bureau for Economic Policy Analysis.
    32. Jan H.M. Nelissen, 1999. "Mortality Differences Related to Socioeconomic Status and the Progressivity of Old-Age Pensions and Health Insurance: The Netherlands," European Journal of Population, Springer;European Association for Population Studies, vol. 15(1), pages 77-97, March.
    33. Harriet Orcutt Duleep, 1986. "Measuring the Effect of Income on Adult Mortality Using Longitudinal Administrative Record Data," Journal of Human Resources, University of Wisconsin Press, vol. 21(2), pages 238-251.
    34. Hans-Martin von Gaudecker & Rembrandt D. Scholz, 2007. "Differential mortality by lifetime earnings in Germany," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 17(4), pages 83-108.
    35. Macintyre, Sally, 1997. "The black report and beyond what are the issues?," Social Science & Medicine, Elsevier, vol. 44(6), pages 723-745, March.
    36. A. J. Culyer & J. P. Newhouse (ed.), 2000. "Handbook of Health Economics," Handbook of Health Economics, Elsevier, edition 1, volume 1, number 1.
    37. Stephen E. Snyder & William N. Evans, 2006. "The Effect of Income on Mortality: Evidence from the Social Security Notch," The Review of Economics and Statistics, MIT Press, vol. 88(3), pages 482-495, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Juan Manuel Pérez-Salamero González & Marta Regúlez Castillo & Carlos Vidal-Meliá, 2021. "Mortality and life expectancy trends for male pensioners by pension income level," Documentos de Trabajo del ICAE 2021-02, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico.
    2. Euwals, Rob & Trevisan, Elisabetta, 2014. "Early Retirement and Financial Incentives: Differences Between High and Low Wage Earners," IZA Discussion Papers 8466, Institute of Labor Economics (IZA).
    3. Adriaan Kalwij, 2014. "An empirical analysis of the importance of controlling for unobserved heterogeneity when estimating the income-mortality gradient," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 31(30), pages 913-940.
    4. Nils Grevenbrock & Max Groneck & Alexander Ludwig & Alexander Zimper, 2021. "Cognition, Optimism, And The Formation Of Age‐Dependent Survival Beliefs," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 62(2), pages 887-918, May.
    5. Juan Manuel Pérez-Salamero González & Marta Regúlez-Castillo & Carlos Vidal-Meliá, 2021. "Differences in Life Expectancy Between Self-Employed Workers and Paid Employees when Retirement Pensioners: Evidence from Spanish Social Security Records," European Journal of Population, Springer;European Association for Population Studies, vol. 37(3), pages 697-725, July.
    6. Vermeer, Niels & Mastrogiacomo, Mauro & Van Soest, Arthur, 2016. "Demanding occupations and the retirement age," Labour Economics, Elsevier, vol. 43(C), pages 159-170.
    7. Marie Connolly & Akakpo Domefa-Konou & Marie-Louise Leroux, 2023. "Evaluating the relationship between income, survival and loss of autonomy among older Canadians," CIRANO Working Papers 2023s-04, CIRANO.
    8. Bauer, Thomas K. & Giesecke, Matthias & Janisch, Laura M., 2017. "Forced migration and mortality," Ruhr Economic Papers 713, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    9. Thomas K. Bauer & Matthias Giesecke & Laura M. Janisch, 2019. "The Impact of Forced Migration on Mortality: Evidence From German Pension Insurance Records," Demography, Springer;Population Association of America (PAA), vol. 56(1), pages 25-47, February.
    10. Marie‐Louise Leroux & Pierre Pestieau, 2023. "Age‐ and health‐related non‐linear inheritance taxation," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 56(3), pages 897-912, August.
    11. Michele Belloni & Rob Alessie & Adriaan Kalwij & Chiara Marinacci, 2013. "Lifetime income and old age mortality risk in Italy over two decades," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 29(45), pages 1261-1298.
    12. Adriaan Kalwij, 2019. "The socio-economic status gradient in median lifespan by birth cohorts: Evidence from Dutch Olympic athletes born between 1852 and 1947," PLOS ONE, Public Library of Science, vol. 14(12), pages 1-11, December.
    13. Jiaxin Shi & Christian Dudel & Christiaan Monden & Alyson A. van Raalte, 2022. "Inequalities in retirement lifespan in the United States," MPIDR Working Papers WP-2022-015, Max Planck Institute for Demographic Research, Rostock, Germany.
    14. Vesile Kutlu-Koc & Adriaan Kalwij, 2017. "Individual Survival Expectations and Actual Mortality: Evidence from Dutch Survey and Administrative Data," European Journal of Population, Springer;European Association for Population Studies, vol. 33(4), pages 509-532, October.
    15. Adriaan Kalwij & Vesile Kutlu Koc, 2021. "Is the accuracy of individuals' survival beliefs associated with their knowledge of population life expectancy?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 45(14), pages 453-468.
    16. Raun Ooijen & Rob Alessie & Adriaan Kalwij, 2015. "Saving Behavior and Portfolio Choice After Retirement," De Economist, Springer, vol. 163(3), pages 353-404, September.
    17. Marlies Bär & Bram Wouterse & Carlos Riumallo Herl & Tom Van Ourti & Eddy Van Doorslaer, 2021. "Diverging Mortality Inequality Trends among Young and Old in the Netherlands," Fiscal Studies, John Wiley & Sons, vol. 42(1), pages 79-101, March.
    18. Giesecke, Matthias, 2019. "The retirement mortality puzzle: Evidence from a regression discontinuity design," Ruhr Economic Papers 800, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    19. Adriaan Kalwij & Rob Alessie & Marike Knoef, 2013. "Pathways to Retirement and Mortality Risk in The Netherlands," European Journal of Population, Springer;European Association for Population Studies, vol. 29(2), pages 221-238, May.
    20. Anna Samarina & Jakob De Haan, 2014. "Right On Target: Exploring The Factors Leading To Inflation Targeting Adoption," Contemporary Economic Policy, Western Economic Association International, vol. 32(2), pages 372-389, April.
    21. Virginia Zarulli, 2016. "Unobserved Heterogeneity of Frailty in the Analysis of Socioeconomic Differences in Health and Mortality," European Journal of Population, Springer;European Association for Population Studies, vol. 32(1), pages 55-72, February.
    22. Jiaxin Shi & Christian Dudel & Christiaan Monden & Alyson van Raalte, 2023. "Inequalities in Retirement Life Span in the United States," The Journals of Gerontology: Series B, The Gerontological Society of America, vol. 78(5), pages 891-901.

    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. Adriaan Kalwij, 2014. "An empirical analysis of the importance of controlling for unobserved heterogeneity when estimating the income-mortality gradient," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 31(30), pages 913-940.
    2. Owen O'Donnell & Eddy Van Doorslaer & Tom Van Ourti, 2013. "Health and Inequality," Tinbergen Institute Discussion Papers 13-170/V, Tinbergen Institute.
    3. Alexander Ahammer & G. Thomas Horvath & Rudolf Winter-Ebmer, 2017. "The effect of income on mortality—new evidence for the absence of a causal link," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 180(3), pages 793-816, June.
    4. Julien Hugonnier & Florian Pelgrin & Pascal St‐Amour, 2020. "Closing down the shop: Optimal health and wealth dynamics near the end of life," Health Economics, John Wiley & Sons, Ltd., vol. 29(2), pages 138-153, February.
    5. 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.
    6. van Kippersluis, Hans & Van Ourti, Tom & O'Donnell, Owen & van Doorslaer, Eddy, 2009. "Health and income across the life cycle and generations in Europe," Journal of Health Economics, Elsevier, vol. 28(4), pages 818-830, July.
    7. Adriaan Kalwij & Rob Alessie & Marike Knoef, 2013. "Pathways to Retirement and Mortality Risk in The Netherlands," European Journal of Population, Springer;European Association for Population Studies, vol. 29(2), pages 221-238, May.
    8. Michele Belloni & Rob Alessie & Adriaan Kalwij & Chiara Marinacci, 2013. "Lifetime income and old age mortality risk in Italy over two decades," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 29(45), pages 1261-1298.
    9. Jared C. Carbone & Snorre Kverndokk, 2016. "Individual Investments in Education and Health: Policy Responses and Interactions," CESifo Working Paper Series 6154, CESifo.
    10. Beomsoo Kim & Christopher J. Ruhm, 2012. "Inheritances, health and death," Health Economics, John Wiley & Sons, Ltd., vol. 21(2), pages 127-144, February.
    11. Carbone, Jared C. & Kverndokk, Snorre, 2014. "Individual investments in education and health," HERO Online Working Paper Series 2014:1, University of Oslo, Health Economics Research Programme.
    12. Maite Blázquez & Elena Cottini & Ainhoa Herrarte, 2014. "The socioeconomic gradient in health: how important is material deprivation?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(2), pages 239-264, June.
    13. Hernández-Quevedo, Cristina & Jones, Andrew M. & Rice, Nigel, 2008. "Persistence in health limitations: A European comparative analysis," Journal of Health Economics, Elsevier, vol. 27(6), pages 1472-1488, December.
    14. Deniz Karaoğlan & Dürdane Şirin Saraçoğlu, 2018. "Socio-Economic Factors Affecting Early Childhood Health: the Case of Turkey," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 11(3), pages 1051-1075, June.
    15. Oscar Erixson, 2017. "Health responses to a wealth shock: evidence from a Swedish tax reform," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(4), pages 1281-1336, October.
    16. 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.
    17. Gabriella Conti, 2013. "The Developmental Origins of Health Inequality," Research on Economic Inequality, in: Health and Inequality, volume 21, pages 285-309, Emerald Group Publishing Limited.
    18. Lindeboom, Maarten & Llena-Nozal, Ana & van der Klaauw, Bas, 2006. "Disability and Work: The Role of Health Shocks and Childhood Circumstances," IZA Discussion Papers 2096, Institute of Labor Economics (IZA).
    19. Liu, Hong & Zhao, Zhong, 2014. "Parental job loss and children's health: Ten years after the massive layoff of the SOEs' workers in China," China Economic Review, Elsevier, vol. 31(C), pages 303-319.
    20. Binswanger, J. & Carman, K.G., 2011. "The Role of Desicion Making Processes in the Correlation between Wealth and Health," Discussion Paper 2011-005, Tilburg University, Center for Economic Research.

    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:spr:demogr:v:50:y:2013:i:1:p:181-206. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.