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The increasing longevity gap by lifetime earnings and its distributional implications

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  • Kemptner, Daniel
  • Haan, Peter
  • Lüthen, Holger

Abstract

We use social security records to document heterogeneity in life expectancy by lifetime earnings and we analyze how this longevity gap has evolved over cohorts. We provide evidence that the earnings-related longevity gap is increasing over cohorts in West Germany. Further, we propose a decomposition to disentangle the role of increasing earnings inequality over cohorts and the effect of changes in the earnings gradient. Finally, we study the distributional implications for the pension system.

Suggested Citation

  • Kemptner, Daniel & Haan, Peter & Lüthen, Holger, 2017. "The increasing longevity gap by lifetime earnings and its distributional implications," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168278, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc17:168278
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    References listed on IDEAS

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    Cited by:

    1. Eytan Sheshinski & Frank N. Caliendo, 2021. "Social Security and the increasing longevity gap," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 23(1), pages 29-52, February.

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    More about this item

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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