Changing Mortality Rates and Income Inequality among the U.S. Elderly: Discussion Sita Slavov George Mason University October 9, 2014

Key points Income inequality has increased (well-known). Not well known: – Increase has been smaller among older people. – Increase in top-half inequality plays larger role in overall inequality increase. – Inequality declines with age in the lower half of the distribution starting at 62. Explanation: Role of public benefits at older ages. Between-income group mortality inequality has increased.

Comments Careful analysis of large and rich datasets. Potential for important contribution to our understanding of the well-being of older people. Distributional implications of raising normal retirement age (important policy question).

Comments Big picture: Why do we care? – Connection between income inequality and mortality analysis. – Income inequality is measured annually, but mortality differences/retirement age issue are about lifetime income. – Progressive Social Security benefit formula reduces inequality among older people, but formula is less progressive in light of mortality differentials. – Income and income inequality vary over the life cycle.

Comments Income inequality: – Role of market income versus post-transfer income? – Role of in-kind transfers at older ages? Measuring men’s income versus women’s: – Own earnings for men; spouse’s earnings for married women. – Would results change if household income were used for both genders?

Comments Income mobility among older people? Increase in Social Security delays: concentrated among high-income? Policy implications – Should NRA be tied to lifetime income? – Should Social Security pay larger acturarial adjustment for delaying if low lifetime income?