Lifetime earnings and life expectancy

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IZA Seminar

Place: Schaumburg-Lippe-Str. 9, 53113 Bonn

Date: 15.05.2014, 12:15 - 13:30

   

Presentation by 

Martin Suster (National Bank of Slovakia (NBS))
   

Abstract:

In this paper we test hypothesis that wealthier individuals live longer. Using a large micro database of current and former retired participants covering years 2005 2011 from the Social Insurance Company our paper aims to study and explore trends and differentials in life expectancy based on lifetime earnings in Slovakia. Tobit and probit models confirm a positive relationship between lifetime earning and life expectancy. Furthermore we estimate remaining life expectancy at age 62 especially of Slovak male pensioners. Despite low level of earnings variance, our findings indicate a difference of 8 years in life expectancy between the lowest and the highest income percentile in this group. The differences are much smaller among women. Results of our analyses are in line with wide foreign research on this topic. The outcomes of the conditional life expectancy may further provide normative implications for the Slovak merit based pension system and the first (PAYG) pillar settings.

   
   
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