Does Ill Health Affect Savings Intentions? Evidence from SHARE
20 Pages Posted: 11 Aug 2009
Date Written: December 12, 2006
This paper uses data from SHARE 2004 to analyze one possible causal pathway of the health-wealth gradient, namely differences in the marginal propensity to save and spend across different health states. Conditional on age and current wealth, I find weak relationships between health and the intended use of a hypothetical windfall gift as well bequest expectations. The overall effect of health on wealth through this link is positive but very small.
Keywords: socio-economic differences in health, savings, bequest expectations
JEL Classification: I12, J14
Suggested Citation: Suggested Citation