The Association Between Individual Income and Remaining Life Expectancy at the Age of 65 in the Netherlands
Rob J.M. Alessie
University of Groningen; Netspar; Tilburg University - Center for Economic Research (CentER)
Tilburg University - CentERdata; Netspar
February 1, 2011
Netspar Discussion Paper No. 09/2009-033
This paper quantifies the association between individual income and remaining life expectancy at the statutory retirement age in the Netherlands of 65. For this purpose, we estimate a mortality risk model using a large administrative dataset that covers the 1996–2007 period. Besides age and marital status, the model includes as covariates individual and spouse’s income, as well as a random individual specific effect. It thus allows for dynamic selection based on both observed and unobserved characteristics.
We find that, conditional on marital status, individual income is about equally strong and negatively associated with mortality risk for men and women and that spouse’s income is only weakly associated with mortality risk for women. For both men and women, we quantify that remaining life expectancy at age 65 for low-income individuals is about two-and-a-half years less than that for high-income individuals.
Number of Pages in PDF File: 47
Keywords: Panel Data, Mortality Risk, Income, Dynamic Selection
JEL Classification: C23, C24, I10, J00working papers series
Date posted: November 19, 2009 ; Last revised: March 24, 2011
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