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  • 6.1 Documentos de trabajo en investigación socioeconómica
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Life expectancy at retirement and income levels in Chile

Abstract
We document that life expectancies at the age of retirement differ significantly by income levels and gender in Chile. Using a sample of over 500 thousand workers that retired under the annuity system, we find that, conditional on reaching retirement age, there is a three-year difference in life expectancy between the lower and higher income groups. Differences are similar for men and women. We also find that as income per capita in Chile expanded over the past three decades, poverty levels have decreased quite markedly among pensioners. The evidence on income distribution is less clear cut. While income inequality is lower for the new generations, it increases after retirement within each generation as the poor die younger than the rich workers. Gender differences are also noteworthy. First, income among women is less unequal than that of men at retirement age and afterwards. Second, income inequality among retired men progressively worsens over time, while among women it remains stagnant over time. Our results have important im- plications for welfare projections, the allocation of health subsidies among pensioners, and the structure and management of the reserves required to life-insurance companies.
Parallel title
CAF - WORKING PAPER #2020/05
Subject
Equidad e inclusión social | Género | Pobreza | Salud | Trabajo y protección social
 
Country / Region
América Latina y el Caribe
Chile
 
URI
http://scioteca.caf.com/handle/123456789/1624
Date
2020-06-15
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  • 6.1 Documentos de trabajo en investigación socioeconómica
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Author
Edwards, Gonzalo
Soto, Raimundo
Zurita, Felipe
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