Regional Heterogeneity in the Link between Lifetime Earnings and Life Expectancy

This study uses administrative data from the German Pension Insurance and combines a wide range of regional data sources in order to shine light on regional variation in the relationship between life expectancy and lifetime earnings in Germany. Moreover, it advances understanding of which place factors are associated with longer life and whether they vary for individuals of different socioeconomic status and over time. I provide first evidence for substantial heterogeneity in the link between lifetime earnings and life expectancy across NUTS2 regions in Germany. Place factors associated with longevity are better healthcare supply, lower air pollution, lower regional poverty and a higher regional prevalence of healthy behaviours. Strikingly, the correlations between place factors and life expectancy appear to be homogeneous rather than heterogeneous in magnitude and direction for individuals at the top and the bottom of the lifetime earnings distribution