Self-Rated Health as Private Information in Predicting Mortality: A Logit Analysis Using KLIPS
Title
Self-Rated Health as Private Information in Predicting Mortality: A Logit Analysis Using KLIPS
Author(s)
Lee, Yong-Woo
Keyword
Self-Rated Health
; Mortality
; Private Information
; Firm Size
; 주관적 건강상태
; 사망률
; 사적 정보
; 기업규모
Publication Year
2013-12-01
Publisher
Korea Institute for Health and Social Affairs
Citation
Health and Social Welfare Review Vol.33 No.4, pp.452-470
Abstract
Using a ten-year span of the Korean Labor and Income Panel Study and a logit specification, this study aims to analyze whether self-rated health has private information about future mortality controlling for demographic and socioeconomic characteristics, health behaviors, and critical medical factors. In particular, it is explored whether predictive power of self-rated health varies with age. For that purpose, the data is divided into three age groups consisting of 30-44, 45-54, and 55-69 groups. It is shown that predictive power of self-rated health on mortality exhibits an increasing and non-decreasing pattern with age. Recently, one noticeable phenomenon in the Korean pension market has been that the enrolment into a defined contribution plan has increased compared to a defined benefit plan. Unlike the workers in DB plan, workers in DC plan annuitize wealth upon retirement. Thus, if individuals have more private information about their health at retirement phase than at younger phase in their lifetimes, the annuity markets at retirement age are likely to suffer from more informational problem. Given the empirical results, it may become hard to insure longevity risk for workers in DC plans in Korea compared to those who are enrolled into DB plans.
Table Of Contents
Ⅰ. Introduction Ⅱ. Data and Methodology Ⅲ. Empirical Results Ⅳ. Discussion References