Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/37235
Authors: 
Wunder, Christoph
Schwarze, Johannes
Year of Publication: 
2010
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Human Capital and Family Economics C6-V3
Abstract: 
Posner (1995) proposes the redistribution of health spending from old women to old men to equalize life expectancy. His argument is based on the assumption that women's utility is higher if they are married. Using life satisfaction data from the German Socio-Economic Panel Study (SOEP), we conduct an empirical test of this assumption. We apply a two-step estimation strategy: first, we use a propensity score matching approach to generate a control group of nonwidowed women. The average level of life satisfaction in the control group serves as a reference to measure the degree of adaptation to widowhood. In the second step, the life satisfaction trajectories of both groups are estimated using penalized spline regressions. The results suggest bereavement has no enduring effect on life satisfaction, and that is evidence against Posner's assumption.
Subjects: 
widowhood
adaptation
subjective well-being
life satisfaction
penalized spline regression
propensity score matching
JEL: 
C14
D10
I31
Document Type: 
Conference Paper

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