Disaggregation of official demographic projections in sub-groups by education level: the neglected “composition effect” in the future path of life expectancy

Abstract We developed an innovative method to break down official population forecasts by educational level. The mortality rates of the high education group and low education group were projected using an iterative procedure, whose starting point was the life tables by education level for Italy, bas...

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Main Authors: Sergio Ginebri, Carlo Lallo
Format: Article
Language:English
Published: SpringerOpen 2021-02-01
Series:Genus
Subjects:
Online Access:https://doi.org/10.1186/s41118-020-00113-3
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author Sergio Ginebri
Carlo Lallo
author_facet Sergio Ginebri
Carlo Lallo
author_sort Sergio Ginebri
collection DOAJ
description Abstract We developed an innovative method to break down official population forecasts by educational level. The mortality rates of the high education group and low education group were projected using an iterative procedure, whose starting point was the life tables by education level for Italy, based on the year 2012. We provide a set of different scenarios on the convergence/divergence of the mortality differential between the high and low education groups. In each scenario, the demographic size and the life expectancy of the two sub-groups were projected annually over the period 2018–2065. We compared the life expectancy paths in the whole population and in the sub-groups. We found that in all of our projections, population life expectancy converges to the life expectancy of the high education group. We call this feature of our outcomes the “composition effect”, and we show how highly persistent it is, even in scenarios where the mortality differential between social groups is assumed to decrease over time. In a midway scenario, where the mortality differential is assumed to follow an intermediate path between complete disappearance in year 2065 and stability at the 2012 level, and in all the scenarios with a milder convergence hypothesis, our “composition effect” prevails over the effect of convergence for men and women. For instance, assuming stability in the mortality differential, we estimated a life expectancy increase at age 65 of 2.9 and 2.6 years for men, and 3.2 and 3.1 for women, in the low and high education groups, respectively, over the whole projection period. Over the same period, Italian official projections estimate an increase of 3.7 years in life expectancy at age 65 for the whole population. Our results have relevant implications for retirement and ageing policies, in particular for those European countries that have linked statutory retirement age to variations in population life expectancies. In all the scenarios where the composition effect is not offset by a strong convergence of mortality differentials, we show that the statutory retirement age increases faster than the group-specific life expectancies, and this finding implies that the expected time spent in retirement will shrink for the whole population. This potential future outcome seems to be an unintended consequence of the indexation rule.
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spelling doaj.art-442f3ae4d3b6431abfe2659386409f102022-12-21T18:10:39ZengSpringerOpenGenus2035-55562021-02-0177112710.1186/s41118-020-00113-3Disaggregation of official demographic projections in sub-groups by education level: the neglected “composition effect” in the future path of life expectancySergio Ginebri0Carlo Lallo1Department of Law, Roma Tre UniversityDepartment of Law, Roma Tre UniversityAbstract We developed an innovative method to break down official population forecasts by educational level. The mortality rates of the high education group and low education group were projected using an iterative procedure, whose starting point was the life tables by education level for Italy, based on the year 2012. We provide a set of different scenarios on the convergence/divergence of the mortality differential between the high and low education groups. In each scenario, the demographic size and the life expectancy of the two sub-groups were projected annually over the period 2018–2065. We compared the life expectancy paths in the whole population and in the sub-groups. We found that in all of our projections, population life expectancy converges to the life expectancy of the high education group. We call this feature of our outcomes the “composition effect”, and we show how highly persistent it is, even in scenarios where the mortality differential between social groups is assumed to decrease over time. In a midway scenario, where the mortality differential is assumed to follow an intermediate path between complete disappearance in year 2065 and stability at the 2012 level, and in all the scenarios with a milder convergence hypothesis, our “composition effect” prevails over the effect of convergence for men and women. For instance, assuming stability in the mortality differential, we estimated a life expectancy increase at age 65 of 2.9 and 2.6 years for men, and 3.2 and 3.1 for women, in the low and high education groups, respectively, over the whole projection period. Over the same period, Italian official projections estimate an increase of 3.7 years in life expectancy at age 65 for the whole population. Our results have relevant implications for retirement and ageing policies, in particular for those European countries that have linked statutory retirement age to variations in population life expectancies. In all the scenarios where the composition effect is not offset by a strong convergence of mortality differentials, we show that the statutory retirement age increases faster than the group-specific life expectancies, and this finding implies that the expected time spent in retirement will shrink for the whole population. This potential future outcome seems to be an unintended consequence of the indexation rule.https://doi.org/10.1186/s41118-020-00113-3Population projectionsMortality forecastingDifferential mortalityCoherent forecastsLife expectancy disparities
spellingShingle Sergio Ginebri
Carlo Lallo
Disaggregation of official demographic projections in sub-groups by education level: the neglected “composition effect” in the future path of life expectancy
Genus
Population projections
Mortality forecasting
Differential mortality
Coherent forecasts
Life expectancy disparities
title Disaggregation of official demographic projections in sub-groups by education level: the neglected “composition effect” in the future path of life expectancy
title_full Disaggregation of official demographic projections in sub-groups by education level: the neglected “composition effect” in the future path of life expectancy
title_fullStr Disaggregation of official demographic projections in sub-groups by education level: the neglected “composition effect” in the future path of life expectancy
title_full_unstemmed Disaggregation of official demographic projections in sub-groups by education level: the neglected “composition effect” in the future path of life expectancy
title_short Disaggregation of official demographic projections in sub-groups by education level: the neglected “composition effect” in the future path of life expectancy
title_sort disaggregation of official demographic projections in sub groups by education level the neglected composition effect in the future path of life expectancy
topic Population projections
Mortality forecasting
Differential mortality
Coherent forecasts
Life expectancy disparities
url https://doi.org/10.1186/s41118-020-00113-3
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