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Health Effects of Increasing Income for the Elderly: Evidence from a Chilean Pension Program

Author

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  • Enrico Miglino
  • Nicolás Navarrete H.
  • Gonzalo Navarrete H.
  • Pablo Navarrete H.
Abstract
We estimate the effect of a permanent income increase on the health outcomes of the elderly poor. Our regression discontinuity design exploits an eligibility cutoff in a Chilean basic pension program that grants monthly payments to retirees without a contributory pension. Using administrative data, we find that four years after applying, basic pension recipients are 2.7 percentage points less likely to have died. Survey evidence suggests an increase in food consumption and visits to health centers as relevant drivers of the mortality reduction.

Suggested Citation

  • Enrico Miglino & Nicolás Navarrete H. & Gonzalo Navarrete H. & Pablo Navarrete H., 2023. "Health Effects of Increasing Income for the Elderly: Evidence from a Chilean Pension Program," American Economic Journal: Economic Policy, American Economic Association, vol. 15(1), pages 370-393, February.
    • Handle: RePEc:aea:aejpol:v:15:y:2023:i:1:p:370-93
    DOI: 10.1257/pol.20200076
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    2. Jose A. Valderrama & Javier Olivera, 2023. "The effects of social pensions on mortality among the extreme poor elderly," Documentos de Trabajo / Working Papers 2023-525, Departamento de Economía - Pontificia Universidad Católica del Perú.
    3. Gu, Jiafeng, 2024. "Determinants of public transportation disability among older adults in China," Transport Policy, Elsevier, vol. 150(C), pages 71-79.
    4. Li, Jingrong & Mi, Xinyu & Zhang, Chenlei & Qin, Yanran, 2024. "Social pension insurance and household risky asset investment: Evidence from China," The Quarterly Review of Economics and Finance, Elsevier, vol. 95(C), pages 219-233.

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    More about this item

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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