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  • 6.1 Documentos de trabajo en investigación socioeconómica
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  • 6.1 Documentos de trabajo en investigación socioeconómica
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Money can buy me life. The Effect of a Basic Pension on Mortality: a Regression Discontinuity Design

Abstract
This paper estimates the effect of a permanent income increase for the elderly on their health outcomes. Our regression discontinuity design exploits an eligibility cutoff in a Chilean basic pension program that grants monthly payments of 40 percent of the minimum wage to pensionless retirees. Four years after applying pension, recipients are 2.5 percentage points less likely to die, with lower incidence of respiratory and circulatory diseases. The effect is concentrated on pension recipients living without working-age relatives, who have more children if living with recipients. This seems explained by pre-existing income transfers from working-age relatives to retirees, which cease when payments begin. Results suggest that increasing income for older individuals could reduce health inequalities across income groups, and mitigate the inter-generational transmission of poverty by alleviating the financial burden imposed on younger relatives.
Subject
Desarrollo | Economía | Productividad
 
Country / Region
América Latina y el Caribe
URI
http://scioteca.caf.com/handle/123456789/1245
Date
2018-06-12
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  • 6.1 Documentos de trabajo en investigación socioeconómica
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Money can buy me life. The E ect of a Basic Pension on Mortality: a Regression Discontinuity Design (1.475Mb)
Author
Miglino, Enrico
Navarrete H., Nicolas
Navarrete H., Gonzalo
Navarrete H., Pablo
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