Working Paper: NBER ID: w15364
Authors: Beomsoo Kim; Christopher J. Ruhm
Abstract: We examine how wealth shocks, in the form of inheritances, affect the mortality rates, health status and health behaviors of older adults, using data from eight waves of the Health and Retirement Survey (HRS). Our main finding is that bequests do not have substantial effects on health, although some improvements in quality-of-life are possible. This absence occurs despite increases in out-of-pocket (OOP) spending on health care and in the utilization of medical services, especially discretionary and non-lifesaving types such as dental care. Nor can we find a convincing indication of changes in lifestyles that offset the benefits of increased medical care. Inheritances are associated with higher alcohol consumption, but with no change in smoking or exercise and a possible decrease in obesity.
Keywords: inheritance; health; mortality; wealth shocks
JEL Codes: I12
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Wealth shocks from substantial inheritances (D14) | health of senior citizens (I19) |
| large inheritances (D14) | health of senior citizens (I19) |
| inheritances (D14) | alcohol consumption (L66) |
| inheritances (D14) | smoking behaviors (I12) |
| inheritances (D14) | exercise behaviors (C92) |
| inheritances (D14) | obesity (I12) |