Regional heterogeneity in the link between lifetime earnings and life expectancy

Abstract The interaction between socioeconomic status, place of residence, and life expectancy remains poorly understood. This study advances this understanding using administrative data from the German Pension Insurance combined with multiple data sources on place characteristics. I provide novel estimates for remaining life expectancy at age 65 by lifetime earnings quintiles and geographic areas (NUTS2), revealing substantial heterogeneity in the link between lifetime earnings and life expectancy across NUTS2 regions in West Germany. Subsequently, I conduct a correlational analysis differentiated by socioeconomic status to investigate which place factors are associated with longevity and examine whether the interaction has changed over time. Strikingly, the correlations between place factors and life expectancy are largely homogeneous in magnitude and direction for individuals at the top and the bottom of the lifetime earnings distribution. Furthermore, I find suggestive evidence that the importance of place for the life expectancy of low-income individuals has decreased over time.