Health, Longevity, and Welfare Inequality of Older Americans

80 Pages Posted: 6 Apr 2021

See all articles by Ray Miller

Ray Miller

Colorado State University

Neha Bairoliya

University of Southern California

Date Written: April 5, 2021

Abstract

We estimate the distribution of well-being among the older U.S. population using an expected utility framework that incorporates differences in consumption, leisure, health, and mortality. We find large disparities in welfare that have increased over time. Incorporating the cost of living with poor health into elderly welfare substantially increases the overall inequality. Disparity measures based on cross-sectional income or consumption underestimate the growth in aggregate welfare inequality. Moreover, health is a better indicator of an individual’s relative welfare position than income or consumption.

Keywords: welfare, inequality, older Americans, elderly, health, morbidity, aging, mortality

JEL Classification: D63, I14, I31, J14

Suggested Citation

Miller, Ray and Bairoliya, Neha, Health, Longevity, and Welfare Inequality of Older Americans (April 5, 2021). Available at SSRN: https://ssrn.com/abstract=3819947 or http://dx.doi.org/10.2139/ssrn.3819947

Ray Miller (Contact Author)

Colorado State University ( email )

Fort Collins, CO 80523
United States

Neha Bairoliya

University of Southern California ( email )

701 Exposition Blvd
Los Angeles, CA 90089-1422
United States

HOME PAGE: http://https://www.nehabairoliya.com/

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