Does Ill Health Affect Savings Intentions? Evidence from SHARE

20 Pages Posted: 11 Aug 2009  

Hendrik Jürges

University of Mannheim - Mannheim Research Institute for the Economics of Aging (MEA); German Institute for Economic Research (DIW Berlin)

Date Written: December 12, 2006

Abstract

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

Jürges, Hendrik, Does Ill Health Affect Savings Intentions? Evidence from SHARE (December 12, 2006). MEA Discussion Paper No. 139-07. Available at SSRN: https://ssrn.com/abstract=1445348 or http://dx.doi.org/10.2139/ssrn.1445348

Hendrik Jürges (Contact Author)

University of Mannheim - Mannheim Research Institute for the Economics of Aging (MEA) ( email )

D-68131 Mannheim
Germany

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

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