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Live Longer and Healthier: Impact of Pension Income for Low-Income Retirees

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  • Malavasi, Chiara

    (ZEW Mannheim)

  • Ye, Han

    (University of Mannheim)

Abstract

We estimate the effect of additional pension income on mortality outcomes by exploring the eli- gibility criteria of a German program subsidizing the pensions of low-wage workers. Using novel administrative data, we find that eligibility leads to a 2-month delay in age at death (censored at 75). Survey evidence suggests that additional pension income improves both mental and physical health. In addition, individuals feel less financially constrained and are more optimistic about their future. Heterogeneity analysis indicates that the results are mainly driven by men.

Suggested Citation

  • Malavasi, Chiara & Ye, Han, 2024. "Live Longer and Healthier: Impact of Pension Income for Low-Income Retirees," IZA Discussion Papers 17024, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17024
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    More about this item

    Keywords

    mortality; health; income; pension subsidy; retirement;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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