How Much Cohort Inequality can be Explained by Socio-Economic Status-Based Mortality Differences?

Several studies have found mortality differences by income level — higher income individuals tend to live longer — and these differences have been growing over time. This differential mortality could affect measured cohort income inequality because the bottom of the income distribution will become relatively sparse as a cohort ages. This study examines the role played by differential mortality in the course of cohort income inequality as a cohort ages from the late preretirement years to old-age. The results show that differential mortality explains little of cohort income inequality and little of the changes in income inequality. Mortality bias does not appear to effect cohort inequality trends.