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Income and “Outcomes” for Elderly: DO the Poor have A Poorer Life?

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  • Jacob Arendt

Abstract

The objective of this paper is to analyze the relationship between income and living conditions and well-being of elderly. The best from two worlds is used for this purpose: a Danish survey covering 1440 elderly aged 72 and 77 from 1997, connected to reliable register information on income, 1988–1996. Indicators of physical activity, social and solitary activities, social contact, functional capability, loneliness and psychological well-being are constructed from the survey. Ordered logistic models are estimated controlling for demographics, education, previous occupation and whether the elderly are still working. It is found that elderly with low income levels have poorer functional capability, lower physical activity and poorer psychological well-being whereas social contact and social activities show no relationship with income. The relationship with income vanishes for solitary activities and loneliness when adding control variables. Having established that robust relations exist between income and some measures of well-being of elderly, we turn to an investigation of causality. Simultaneous models are estimated to assess whether the income relationship can be causally interpreted for functional capability and physical activity. The results show that it cannot be rejected that the income effects are causal, although care should be taken when interpreting results. We finally address our findings in the light of current and future changes regarding the size and economic well-being of the elderly population. Copyright Springer 2005

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  • Jacob Arendt, 2005. "Income and “Outcomes” for Elderly: DO the Poor have A Poorer Life?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 70(3), pages 327-347, February.
    • Handle: RePEc:spr:soinre:v:70:y:2005:i:3:p:327-347
    DOI: 10.1007/s11205-004-1545-8
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    References listed on IDEAS

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    1. Anne Case & Angus Deaton, 2002. "Consumption, health, gender and poverty," Working Papers 197, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
    2. repec:pri:rpdevs:case_deaton_consumption_health_gender is not listed on IDEAS
    3. repec:pri:cheawb:case_deaton_consumption_health_gender is not listed on IDEAS
    4. repec:pri:cheawb:case_deaton_consumption_health_gender.pdf is not listed on IDEAS
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    Cited by:

    1. Thomas Akintayo & Niina Häkälä & Katja Ropponen & Elsa Paronen & Sari Rissanen, 2016. "Predictive Factors for Voluntary and/or Paid Work among Adults in their Sixties," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(3), pages 1387-1404, September.
    2. Xue Han & Yunyue Yang & Feng Li & Yuhui Li, 2022. "Adding Life to Years: The Influence of Internet Use and Appearance Management on Life Satisfaction Among the Elderly," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 160(2), pages 585-600, April.
    3. Natalia Kopylova & Talita Greyling & Stephanié Rossouw, 2022. "Multidimensional Quality of Life of Older Adults in South Africa," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 17(6), pages 3427-3450, December.
    4. Calvo, Esteban & Haverstick, Kelly & Sass, Steven, 2007. "What Makes Retirees Happier: A Gradual or 'Cold Turkey' Retirement?," MPRA Paper 5607, University Library of Munich, Germany.
    5. Alaina N. English & Jennifer A. Bellingtier & Shevaun D. Neupert, 2019. "It’s “the Joneses”: the influence of objective and subjective socioeconomic status on subjective perceptions of aging," European Journal of Ageing, Springer, vol. 16(1), pages 121-128, March.
    6. Cintya Lanchimba & Joselyn Quisnancela & Yasmín Salazar Méndez, 2020. "The choice of elderly labor: Evidence from Ecuador," Revista de Analisis Economico – Economic Analysis Review, Universidad Alberto Hurtado/School of Economics and Business, vol. 35(1), pages 75-97, April.
    7. Calvo, Esteban & Haverstick, Kelly & Sass, Steven, 2007. "A Gradual Exit may Not Make for a Happier Retirement?," MPRA Paper 5605, University Library of Munich, Germany.

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