Arbeitspapier
The Rising Longevity Gap by Lifetime Earnings: Distributional Implications for the Pension System
This study uses German social security records to provide novel evidence about the heterogeneity in life expectancy by lifetime earnings and, additionally, documents the distributional implications of this earnings-related heterogeneity. We find a strong association between lifetime earnings and life expectancy at age 65 and show that the longevity gap is increasing across cohorts. For West German men born 1926–28, the longevity gap between top and bottom decile amounts to about 4 years (about 30%). This gap increases to 7 years (almost 50%) for cohorts 1947–49. We extend our analysis to the household context and show that lifetime earnings are also related to the life expectancy of the spouse. The heterogeneity in life expectancy has sizable and relevant distributional consequences for the pension system: when accounting for heterogeneous life expectancy, we find that the German pension system is regressive despite a strong contributory link. We show that the internal rate of return of the pension system increases with lifetime earnings. Finally, we document an increase of the regressive structure across cohorts, which is consistent with the increasing longevity gap.
- Language
-
Englisch
- Bibliographic citation
-
Series: IZA Discussion Papers ; No. 11121
- Classification
-
Wirtschaft
Social Security and Public Pensions
Health and Inequality
Demographic Trends, Macroeconomic Effects, and Forecasts
- Subject
-
mortality
lifetime inequality
pensions
redistribution
- Event
-
Geistige Schöpfung
- (who)
-
Haan, Peter
Kemptner, Daniel
Lüthen, Holger
- Event
-
Veröffentlichung
- (who)
-
Institute of Labor Economics (IZA)
- (where)
-
Bonn
- (when)
-
2017
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Haan, Peter
- Kemptner, Daniel
- Lüthen, Holger
- Institute of Labor Economics (IZA)
Time of origin
- 2017
Other Objects (12)
The rising longevity gap by lifetime earnings: Distributional implications for the pension system
The rising longevity gap by lifetime earnings: Distributional implications for the pension system
The increasing longevity gap by lifetime earnings and its distributional implications
Peter Haan, B. zu Owen, wegen Diebstahls von zwei silbernen Löffeln und einem Brotmesser zu Kirchheim gef., jedoch auf Fürbitte freigel., nachdem er sich anstatt des Rechts für eine Verschreibung entschieden hatte, gelobt, zur Strafe für sein Vergehen 15 fl an dem Herzog zu zahlen, sich künftig wohl zu verhalten, und schwört U. Er stellt ferner 3 Bürgen, die sich verpflichten, ihn im Fall der Übertretung dieser U. binnen 14 Tagen festzunehmen und der Obrigkeit zu überantworten oder, wenn dies nicht geschähe, 100 fl zu bezahlen. Bürgen: Veit Knoll, Lentz Henlin, Gall Bintz, alle von Owen, seine Brüder und Vettern.
Longevity, Life-Cycle Behavior and Pension Reform
Longevity, life-cycle behavior and pension reform
Longevity, life-cycle behavior and pension reform
Distributional Effects of the German Tax Reform 2000 - A Behavioral Microsimulation Analysis
Distributional and Fiscal Effects of the German Tax Reform 2000 : A Behavioral Microsimulation Analysis
State Dependence and Female Labor Supply in Germany: The Extensive and the Intensive Margin
On the incidence of renewable energy subsidies into land prices - Evidence from Germany
Intertemporal Labor Supply Effects of Tax Reforms
The rising longevity gap by lifetime earnings: Distributional implications for the pension system
The rising longevity gap by lifetime earnings: Distributional implications for the pension system
The increasing longevity gap by lifetime earnings and its distributional implications
Peter Haan, B. zu Owen, wegen Diebstahls von zwei silbernen Löffeln und einem Brotmesser zu Kirchheim gef., jedoch auf Fürbitte freigel., nachdem er sich anstatt des Rechts für eine Verschreibung entschieden hatte, gelobt, zur Strafe für sein Vergehen 15 fl an dem Herzog zu zahlen, sich künftig wohl zu verhalten, und schwört U. Er stellt ferner 3 Bürgen, die sich verpflichten, ihn im Fall der Übertretung dieser U. binnen 14 Tagen festzunehmen und der Obrigkeit zu überantworten oder, wenn dies nicht geschähe, 100 fl zu bezahlen. Bürgen: Veit Knoll, Lentz Henlin, Gall Bintz, alle von Owen, seine Brüder und Vettern.
Longevity, Life-Cycle Behavior and Pension Reform
Longevity, life-cycle behavior and pension reform
Longevity, life-cycle behavior and pension reform
Distributional Effects of the German Tax Reform 2000 - A Behavioral Microsimulation Analysis
Distributional and Fiscal Effects of the German Tax Reform 2000 : A Behavioral Microsimulation Analysis
State Dependence and Female Labor Supply in Germany: The Extensive and the Intensive Margin
On the incidence of renewable energy subsidies into land prices - Evidence from Germany
Intertemporal Labor Supply Effects of Tax Reforms
The rising longevity gap by lifetime earnings: Distributional implications for the pension system
The rising longevity gap by lifetime earnings: Distributional implications for the pension system
The increasing longevity gap by lifetime earnings and its distributional implications
Peter Haan, B. zu Owen, wegen Diebstahls von zwei silbernen Löffeln und einem Brotmesser zu Kirchheim gef., jedoch auf Fürbitte freigel., nachdem er sich anstatt des Rechts für eine Verschreibung entschieden hatte, gelobt, zur Strafe für sein Vergehen 15 fl an dem Herzog zu zahlen, sich künftig wohl zu verhalten, und schwört U. Er stellt ferner 3 Bürgen, die sich verpflichten, ihn im Fall der Übertretung dieser U. binnen 14 Tagen festzunehmen und der Obrigkeit zu überantworten oder, wenn dies nicht geschähe, 100 fl zu bezahlen. Bürgen: Veit Knoll, Lentz Henlin, Gall Bintz, alle von Owen, seine Brüder und Vettern.
Longevity, Life-Cycle Behavior and Pension Reform
Longevity, life-cycle behavior and pension reform
Longevity, life-cycle behavior and pension reform
Distributional Effects of the German Tax Reform 2000 - A Behavioral Microsimulation Analysis
Distributional and Fiscal Effects of the German Tax Reform 2000 : A Behavioral Microsimulation Analysis
State Dependence and Female Labor Supply in Germany: The Extensive and the Intensive Margin
On the incidence of renewable energy subsidies into land prices - Evidence from Germany