Health Effects of Increasing Income for the Elderly: Evidence from a Chilean Pension Program
Nicolás Navarrete H.
Gonzalo Navarrete H.
Pablo Navarrete H.
- American Economic Journal: Economic Policy (Forthcoming)
We estimate the effect of a permanent income increase on the
health outcomes of the elderly poor. Our regression discontinuity
design exploits an eligibility cut-off 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.
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