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Mortality Differences Related to Socioeconomic Status and the Progressivity of Old-Age Pensions and Health Insurance: The Netherlands

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  • Jan H.M. Nelissen

    (CentER, Tilburg University)

Abstract

Research on the progressivity of the social security system generally does not take into account the existence of differences in mortality rates between socioeconomic groups. For the Netherlands, these differences result in a difference in life expectancy between persons with a lower education and persons with a higher education of about 4.5 years. On a lifetime basis this results in a net loss of about Dfl. 90,000 for the group with a lower education in comparison with the group with a higher education. This means that the return from various social security schemes no longer appears to be the highest for persons with a lower education. In particular, the group with a middle level education now gains from the system. Due to these differences in life expectancy, the redistributive impact of the social security system, as measured by the Theil coefficient, is decreased by about 6%.

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  • 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.
    • Handle: RePEc:spr:eurpop:v:15:y:1999:i:1:d:10.1023_a:1006188911462
    DOI: 10.1023/A:1006188911462
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    References listed on IDEAS

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    1. Danziger, Sheldon & Haveman, Robert & Plotnick, Robert, 1981. "How Income Transfer Programs Affect Work, Savings, and the Income Distribution: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 19(3), pages 975-1028, September.
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    4. Michael D. Hurd & John B. Shoven, 1985. "The Distributional Impact of Social Security," NBER Chapters, in: Pensions, Labor, and Individual Choice, pages 193-222, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Christophe Hachon, 2010. "Éducation et progressivité des systèmes de retraite. Quand les inégalités face à la mort comptent," Revue économique, Presses de Sciences-Po, vol. 61(4), pages 751-769.
    2. 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.
    3. 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.
    4. Adeline Delavande & Susann Rohwedder, 2008. "Differential Mortality in Europe and the U.S. Estimates Based on Subjective Probabilities of Survival," Working Papers 613, RAND Corporation.
    5. Adeline Delavande & Susann Rohwedder, 2008. "Differential Mortality in Europe and the U.S. Estimates Based on Subjective Probabilities of Survival," Working Papers WR-613, RAND Corporation.
    6. David A. Sánchez-Páez, 2022. "Effects of income inequality on COVID-19 infections and deaths during the first wave of the pandemic: Evidence from European countries," Vienna Yearbook of Population Research, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna, vol. 20(1), pages 85-106.
    7. Séverine Arnold & Anca Jijiie, 2020. "Retirement Ages by Socio-Economic Class," Risks, MDPI, vol. 8(4), pages 1-40, October.
    8. Mazzaferro, Carlo & Morciano, Marcello & Savegnago, Marco, 2012. "Differential mortality and redistribution in the Italian notional defined contribution system," Journal of Pension Economics and Finance, Cambridge University Press, vol. 11(4), pages 500-530, October.
    9. Adeline Delavande & Susann Rohwedder, 2011. "Differential Survival in Europe and the United States: Estimates Based on Subjective Probabilities of Survival," Demography, Springer;Population Association of America (PAA), vol. 48(4), pages 1377-1400, November.
    10. Monika Bütler, 2002. "Flexibility and Redistribution in Old Age Insurance," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 138(IV), pages 427-437, December.
    11. 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.
    12. Anca-Stefania Jijiie & Jennifer Alonso Garcia & Séverine Arnold (-Gaille), 2019. "Mortality by socio-economic class and its impact on the retirement schemes: How to render the systems fairer?," ULB Institutional Repository 2013/300032, ULB -- Universite Libre de Bruxelles.

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