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Title: The Effect of Income on Mortality - New Evidence for the Absence of a Causal Link

Author(s): Alexander Ahammer, Gerard Thomas Horvath and Rudolf Winter-Ebmer

Publication Date: July 2015

Keyword(s): income, mortality and wage decomposition

Programme Area(s): Labour Economics

Abstract: We analyze the effect of income on mortality in Austria using administrative social security data. To tackle potential endogeneity concerns arising in this context, we estimate time-invariant firm-specific wage components and use them as instruments for actual wages. While we do find quantitatively small yet statistically significant effects in our na´ve least squares estimations, IV regressions reveal a robust zero-effect of income on ten-year death rates for prime-age workers, both in terms of coecient magnitude and statistical significance. These results are robust to a number of different sample specifications and both linear and non-linear estimation methods.

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Bibliographic Reference

Ahammer, A, Horvath, G and Winter-Ebmer, R. 2015. 'The Effect of Income on Mortality - New Evidence for the Absence of a Causal Link'. London, Centre for Economic Policy Research. http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=10728