Later-Life Economic Inequality in Longitudinal Perspective

Data from the National Longitudinal Survey of Older Men were used to estimate economic inequality within three 5-year cohorts as they moved from midlife to later life. The Gini index of inequality increased steadily after age 59, supporting the hypothesis that within-cohort inequality increases in late life. However, a transition analysis found considerable mobility in relative status for individuals over a 15-year period. These results suggest the need to develop a longitudinal perspective on later-life economic status which distinguishes between individual-level and population-level outcomes and identifies the life events and characteristics of individuals that predict changes in economic status. Further research is needed on the processes which lead to later-life inequality, and on the distributional impact of public and private pension policies.