Life‐Cycle Variations in the Association between Current and Lifetime Income: Replication and Extension for Sweden

Böhlmark, Anders; Lindquist, Matthew J.

doi:10.1086/506489

Cited by 254 publications

(243 citation statements)

References 11 publications

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“…6 However, the validation studies by Garrouste andPaccagnella (2011) andHavari andMazzonna (2011) find that recall bias is not severe in SHARELIFE data, arguably because of the state-of-the-art elicitation methods used: respondents are helped to locate events along the time line, starting from domains that are more easily remembered, and then asked progressively more details about them. 7 It is also reassuring for us that our estimates are in line with estimates obtained using administrative data, as 5 Haider and Solon (2006), Böhlmark and Lindquist (2006) and Brenner (2010) also assume a constant real interest rate of 2% to construct a measure of lifetime income. Bhuller et al (2011) use instead an interest rate of 2.3%.…”

Section: The Datasupporting

confidence: 70%

Books are Forever: Early Life Conditions, Education and Lifetime Earnings in Europe

2012

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. We estimate the effect of education on lifetime income in Europe, by distinguishing between individuals who lived in rural or urban areas during childhood and between individuals who had access to many or few books at age ten. We instrument years of education using reforms of compulsory education in nine different countries, and find that individuals in rural areas were most affected by the reforms. Among those affected, individuals with many books at home at age ten enjoyed substantially higher returns to their additional education. We argue that the long -lasting beneficial effects of having books at home are due to the cultural environment in the household and the development of cognitive skills rather than to the presence of short -term liquidity constraints. Terms of use: Documents in EconStor mayJEL Code: J24

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Section: The Datasupporting

confidence: 70%

Books are Forever: Early Life Conditions, Education and Lifetime Earnings in Europe

2012

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“…Note that we are not attempting to capture the relationship between permanent or lifetime income and length of life. It is now well-established that the relationship between lifetime and annual income is a complex one and that the classical measurement error model is grossly inadequate at most stages of the lifecycle and that individual income processes can be very different for men and women (see Haider and Solon, 2006;Böhlmark and Lindquist, 2006;Nybom and Stuhler, 2011). Our aim is simply to describe the evolution of the cross-sectional bivariate distribution of income and length of life across time.…”

Section: Methodsmentioning

confidence: 99%

Trends in Life Expectancy by Income and the Role of Specific Causes of Death

et al. 2017

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This study explores how life expectancy at age 35 has evolved across the income distribution in Sweden over time. We examine individual income for men 1970–2007 and family income for both men and women 1980–2007. During this period, income inequality increased in most western countries, but especially so in Sweden. Drawing on a large sample of the Swedish population, our results show that the gap in life expectancy between the richest and poorest fifths of the income distribution also increased. This was the case both for individual and family income. The increase was larger for men than for women, but the only group with stagnant life expectancy at age 35 was women in the lowest income quintile group. Between 1986 and 2007, the difference between the lowest and highest family income quintiles increased by about one year for women and by almost two years for men. The causes of death that most significantly contributed to the increased disparities among women were circulatory and respiratory diseases. For men, circulatory disease mortality alone caused most of the increased disparities.

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“…We use the average of real total income over the years when sons were 32-38 years of age. At these ages, we are likely to get a good estimate of long-run income (see Böhlmark & Lindquist, 2006). Further, averaging over as long a period as seven years is likely to eliminate most transitory income variation that is not relevant for our purposes.…”

Section: Datamentioning

confidence: 99%