Oxford Institute of Ageing Developing individualised life tables BSPS Annual Conference 12 September 2007 Martin Karlsson Oxford Institute of Ageing University Of Oxford OXFORD INSTITUTE OF AGEING Les Mayhew Ben Rickayzen Cass Business School Cass Business School City University City University Oxford Institute of Ageing Outline • • • • • • • Background: The importance of healthy life expectancy Recent trends in HLE Objectives of research Empirical strategy Preliminary results Application: Individualised life tables Application: Potential gains in HLE and LE OXFORD INSTITUTE OF AGEING Oxford Institute of Ageing Background: Informal Care 140 . 130 Million Hours per week 120 110 100 90 80 70 Demand, 65+ Total Demand Supply 60 50 Year OXFORD INSTITUTE OF AGEING 2050 2045 2040 2035 2030 2025 2020 2015 2010 2005 2000 40 Oxford Institute of Ageing Recent Trends in HLE Three hypotheses have been considered: • Compression of morbidity (Fries) • Expansion of morbidity (Gruenberg) • Combination (Manton) OXFORD INSTITUTE OF AGEING However, UK data are surprisingly inconclusive: • Life expectancy free from any disability has been slowly increasing. • Proportion of life spent free from any disability has been roughly constant. • Severe-disability free life expectancy has been increasing (ADL based definition) • The proportion of life spent free from severe disability has been increasing. • The severely-disabled life expectancy has fallen. Oxford Institute of Ageing Objectives of Research • To analyse the dynamics of health, labour market participation and cohabitation in the UK population • To analyse trends in morbidity and mortality at the individual level • To project future labour market participation, cohabitation and morbidity of subgroups of the UK population • To analyse the individual effects of transitions between different employment, health and cohabitation states OXFORD INSTITUTE OF AGEING Oxford Institute of Ageing Empirical Strategy Dataset We use all available waves of the British Household Panel Survey (1991-2004) Independent variables include • Age, sex and ethnicity • Educational attainment • Time trends OXFORD INSTITUTE OF AGEING Estimation Strategy: GHK • We estimate a system of equations: – – – – • Survival Employment Status Cohabitation Status Disability Estimation strategy includes correcting for – – – – Autocorrelation Random effects Attrition (IPW) State Dependence & Initial Conditions Oxford Institute of Ageing Results I: Employment Variable Constant Age Age2 University A Levels O Levels Year Year2 Non-white Wt-1 Ct-1 Ht-1 OXFORD INSTITUTE OF AGEING Males Coefficient -3.4513 8.8999 -12.7080 0.3592 0.1545 0.1737 0.6783 -0.3626 -0.0607 2.1235 0.1623 0.5065 T Stat -28.75 *** 23.53 *** -34.24 *** 12.24 *** 6.28 *** 7.33 *** 6.70 *** -5.71 *** -1.52 113.79 *** 5.96 *** 19.19 *** Females Coefficient T Stat -3.6494 -32.21 *** 11.1474 26.55 *** -14.6295 -33.12 *** 0.3312 12.17 *** 0.1861 8.03 *** 0.1508 7.35 *** 0.1537 1.77 * -0.0793 -1.47 -0.1216 -3.15 *** 2.1122 141.26 *** -0.0852 -4.26 *** 0.3638 16.28 *** Oxford Institute of Ageing Results II: Cohabitation Variable Constant Age Age2 University A Levels O Levels Year Year2 Non-white Wt-1 Ct-1 Ht-1 Wt OXFORD INSTITUTE OF AGEING Males Coefficient -2.5938 3.1559 -3.5308 0.1651 0.0680 0.0866 0.0998 -0.0253 0.1707 0.1617 3.0812 -0.0149 -0.0277 T Stat -25.84 *** 9.92 *** -11.35 *** 5.79 *** 2.89 *** 3.62 *** 0.88 -0.37 4.35 *** 4.12 *** 154.98 *** -0.49 -0.67 Females Coefficient T Stat -2.3203 -23.10 *** 2.0719 6.45 *** -3.2182 -10.46 *** 0.0535 1.72 * 0.0118 0.47 -0.0412 -1.83 * 0.2768 2.58 ** -0.1540 -2.36 ** -0.0544 -1.42 0.3229 9.23 *** 3.1764 166.30 *** 0.1429 5.27 *** -0.2975 -7.66 *** Oxford Institute of Ageing Results III: Disability Variable Constant Age Age2 University A Levels O Levels Year Year2 Non-white Wt-1 Ct-1 Ht-1 Wt Ct OXFORD INSTITUTE OF AGEING Males Coefficient -0.2781 -1.3014 0.7406 0.2723 0.2097 0.0850 -0.6348 0.2249 -0.1803 0.0896 -1.8255 1.3146 0.4020 2.0931 T Stat -2.71 *** -4.03 *** 2.49 ** 9.44 *** 9.38 *** 3.83 *** -7.10 *** 4.15 *** -4.99 *** 2.48 ** -38.33 *** 67.49 *** 10.51 *** 43.83 *** Females Coefficient T Stat -0.7675 -9.82 *** 1.9298 7.38 *** -2.8512 -11.94 *** 0.1481 5.64 *** 0.1716 8.22 *** 0.1320 7.51 *** -0.4645 -6.38 *** 0.0939 2.10 ** -0.2757 -8.30 *** 0.1218 4.47 *** 1.9043 57.46 *** 1.2248 79.66 *** 0.1388 4.67 *** -2.0342 -63.04 *** Oxford Institute of Ageing Application: Life Tables, Males (1) N 12,969 2,890 370 24,158 3,360 370 1,210 1,210 1,210 1,680 100,000 (2) EDU 1 1 1 2 2 3 2 3 4 4 2.5 OXFORD INSTITUTE OF AGEING (3) W 1 1 0 1 1 0 0 0 0 0 0.9 (4) C 1 0 0 1 0 0 1 1 0 1 0.8 (5) H 1 1 1 1 1 0 0 0 0 0 0.9 (6) LE 33.5 31.3 32.2 31.0 29.0 23.4 24.1 24.2 20.7 21.6 29.9 (7) WLE 15.9 14.7 7.7 13.3 12.4 1.1 1.1 1.1 0.6 0.6 11.7 (8) CLE 19.2 14.5 9.5 16.4 12.0 1.8 7.2 7.2 1.1 5.8 14.5 (9) HLE 25.9 25.0 24.5 23.0 22.5 6.5 6.2 5.5 5.0 4.2 20.5 Oxford Institute of Ageing Application: Life Tables, Females (1) N 12,690 1,470 8,360 1,550 4,260 3,410 310 230 540 1,320 100,000 (2) EDU 2 2 1 1 3 4 2 1 3 4 2.7 OXFORD INSTITUTE OF AGEING (3) W 1 0 1 0 0 0 0 0 0 0 0.8 (4) C 1 1 1 1 1 1 0 0 0 0 0.8 (5) H 1 1 1 1 1 0 0 0 0 0 0.8 (6) LE 38.9 39.9 38.7 39.7 39.6 29.7 28.0 27.8 27.4 25.6 36.4 (7) WLE 12.1 4.0 13.6 5.3 3.7 1.1 1.6 2.2 1.4 0.9 9.3 (8) CLE 12.7 7.3 14.0 8.4 6.8 4.6 1.3 1.7 1.1 0.9 9.7 (9) HLE 28.0 27.8 27.7 27.3 27.2 7.8 7.7 7.5 7.0 5.5 23.2 Oxford Institute of Ageing Application: Potential Gains from Employment LE Size SEX EDU C 95 0 1 1 605 0 2 1 605 0 3 1 155 1 1 1 840 0 4 1 Average 0.6 3.0 0.7 75 1 1 0 280 0 4 0 375 0 2 0 235 0 3 0 185 0 1 0 OXFORD INSTITUTE OF AGEING H 0 0 0 0 0 0.6 1 1 1 1 1 Gap 6.1 5.7 5.5 6.7 5.5 3.3 -3.8 -0.8 -0.8 -0.9 -0.9 WLE Gain 6.3 6.2 5.9 -1.1 5.4 0.6 -3.5 -1.0 -1.8 -2.0 -4.4 Gap 10.6 9.0 9.1 8.3 7.6 7.9 6.6 6.7 7.0 7.0 7.0 Gain 9.7 8.3 8.3 7.6 7.1 4.0 0.1 0.1 -0.6 -0.8 -2.1 Oxford Institute of Ageing Application: Potential Gains from Health Improvement LE Size SEX EDU C 115 1 1 0 155 1 1 0 425 1 2 0 1,005 1 3 0 270 1 3 0 Average 0.6 3.0 0.5 1,025 0 3 1 45 0 3 1 185 0 2 1 465 0 1 1 95 0 1 1 OXFORD INSTITUTE OF AGEING H 0 1 1 1 0 0.8 1 0 0 1 0 Gap 8.0 7.5 7.3 7.3 8.2 2.5 1.2 -5.4 -5.4 1.1 -5.4 WLE Gain 9.2 12.9 13.0 13.0 6.9 3.4 2.5 -9.4 -9.9 0.0 -10.0 Gap 3.6 2.7 2.1 2.0 2.7 2.4 3.2 2.5 2.4 3.3 2.3 Gain 10.7 10.2 9.4 9.2 9.1 1.4 -8.3 -8.6 -8.7 -9.6 -10.0 Oxford Institute of Ageing Summary of Findings • Attrition, state dependence and initial conditions are all important factors to take into account when analysing population dynamics based on the BHPS. • Cohabitation has very different effects for males and females • Our model has good a fit and does a good job in replicating aggregate population figures, but estimates are shaky in small subgroups. OXFORD INSTITUTE OF AGEING Oxford Institute of Ageing Summary of Findings II • There is considerable variation in the effects of employment and disability transitions for different subgroups of the population. • Overall, disabled people seem to benefit much more from an employment status change than able-bodied individuals. • No independent time trends observed in the data. OXFORD INSTITUTE OF AGEING Oxford Institute of Ageing Thank you for listening! OXFORD INSTITUTE OF AGEING
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