Health Inequality in Germany
Pension reforms in Germany decreased benefit generosity and increased the retirement age since the 1980s. Decreasing benefit generosity may result in fewer out-of-pocket expenditures for healthcare, and later retirement ages imply a longer time in arduous jobs for many individuals. Both will most likely affect older individuals in the lower income brackets more than richer individuals. The question to be answered by this paper is therefore whether these reforms increased health inequality for retirees.
We use SHARE data from 2004 through 2022, five different health measures, and three different ways to characterize health inequality. We neither find a systematic pattern nor a statistically significant measure that would indicate that health inequality has increased from 2004 to 2022.
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Copy CitationAxel Börsch-Supan, Luca Salerno, Frederik Fetzer, and Johannes Rausch, Social Security Programs and Retirement Around the World: Pension Reforms and the Health Distribution of Retirees (University of Chicago Press, 2025), chap. 4, https://www.nber.org/books-and-chapters/social-security-programs-and-retirement-around-world-pension-reforms-and-health-distribution/health-inequality-germany.Download Citation