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Title: Healthy, Wealthy, and Wise? The Impact of Old Age Assistance Program on Elderly Mortality in the U.S., 1931-1955

Citation Type: Miscellaneous

Publication Year: 2006

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Abstract: How much have government programs improved the well-being of the most vulnerable elderly? To analyze this question, I examine the impact of Old Age Assistance (OAA) the first significant U.S. welfare program for the elderlyon the mortality of older Americans from 1930-1955. I construct two new data sets: a database of OAA benefits and rules, and a database of mortality by age, race, gender, and cause of death. To control for the joint determination of income and mortality, I use a simulated instrumental variables approach that relies on exogenous changes in OAA legislation at the state and year level. I find a substantial reduction in mortality for many vulnerable elderly groups, especially poor males. Mortality decreased mainly because of declines in risky behavior, infectious diseases (after the introduction of antibiotics) and suicides. Household survey analyses reveal changes in consumption consistent with these patterns. Overall, OAA income transfers were highly effective in preventing deaths among the elderly poor by increasing their access to health care and altering their behavior.

Url: https://www.mcgill.ca/economics/files/economics/balancohenpaper.pdf

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Authors: Balan-Cohen, Andreea

Publisher: Harvard University

Data Collections: IPUMS International

Topics: Aging and Retirement, Fertility and Mortality

Countries: United States