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Health Dynamics and Heterogeneous Life Expectancies

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  • Richard Foltyn
  • Jonna Olsson

Abstract

Using biennial data from the Health and Retirement Study, we estimate age-dependent health dynamics and survival probabilities at annual frequency conditional on race, sex, and health. The health gradient in life expectancy is steep and persists after controlling for socioeconomic status. Moreover, even conditional on health and socioeconomic status, the racial gap in life expectancy remains large. Simulations show that this gap affects savings rates but does not play a major role in explaining the racial wealth gap. However, differences in mortality imply that black individuals on average can expect to receive 15% less in Social Security benefits in present value terms.

Suggested Citation

  • Richard Foltyn & Jonna Olsson, 2021. "Health Dynamics and Heterogeneous Life Expectancies," Working Papers 2021_17, Business School - Economics, University of Glasgow.
    • Handle: RePEc:gla:glaewp:2021_17
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    File URL: https://www.gla.ac.uk/media/Media_811161_smxx.pdf
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    References listed on IDEAS

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    1. Mariacristina De Nardi & Eric French & John B. Jones, 2010. "Why Do the Elderly Save? The Role of Medical Expenses," Journal of Political Economy, University of Chicago Press, vol. 118(1), pages 39-75, February.
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    Cited by:

    1. Richard Foltyn & Jonna Olsson, 2024. "Subjective life expectancies, time preference heterogeneity, and wealth inequality," Quantitative Economics, Econometric Society, vol. 15(3), pages 699-736, July.

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    More about this item

    Keywords

    Life expectancy; health dynamics; racial life expectancy gap;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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