Scandinavian Working Papers in Economics

Working Paper Series,
IFAU - Institute for Evaluation of Labour Market and Education Policy

No 2014:21: Income receipt and mortality - evidence from Swedish public sector employees

Elvira Andersson (), Petter Lundborg () and Johan Vikström ()
Additional contact information
Elvira Andersson: Lund University, Postal: Box 7082, S-220 07 Lund, Sweden
Petter Lundborg: Lund University, Postal: Box 7082, S-220 07 Lund, Sweden
Johan Vikström: IFAU - Institute for Evaluation of Labour Market and Education Policy, Postal: Box 513, S-751 20 Uppsala, Sweden

Abstract: In this paper, we study the short-run effect of salary receipt on mortality among Swedish public sector employees. By using data on variation in paydays across work-places, we completely control for mortality patterns related to, for example, public holidays and other special days or events coinciding with paydays and for general within-month and within-week mortality patterns. We find a dramatic increase in mortality on the day salaries arrive. The increase is especially pronounced for younger workers and for deaths due to activity-related causes such as heart conditions and strokes. Additionally, the effect is entirely driven by an increase in mortality among low income individuals, who are more likely to experience liquidity constraints. All things considered, our results suggest that an increase in general economic activity on salary receipt is an important cause of the excess mortality.

Keywords: Income; mortality; health; consumption; liquidity constraints; permanent income hypothesis

JEL-codes: D91; H31; H55; I10; I12; I38

31 pages, August 31, 2014

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wp2014-21-Income-receipt-and-mortality.pdf PDF-file 

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