The impact of austerity on mortality and life expectancy

Berman, Yonatan and Hovland, Tora (2024) The impact of austerity on mortality and life expectancy. III Working Paper (139). International Inequalities Institute, London School of Economics and Political Science.

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Abstract

This paper studies the impact of austerity measures introduced by the UK government after 2010 on life expectancy and mortality. We combine administrative data sources to create a panel dataset spanning from 2002 to 2019. Using a difference-in-differences strategy, we estimate the effect of cuts to welfare benefits and changes in health expenditure on life expectancy and mortality rates. Our findings indicate that these austerity measures reduced life expectancy by 2.5 to 5 months by 2019. Women were nearly twice as affected as men. The primary driver of this trend is cuts to welfare benefits, although healthcare spending changes have a larger effect per pound spent. The results suggest that austerity policies caused a three-year setback in life expectancy progress between 2010 and 2019. This is equivalent to about 190,000 excess deaths, or 3 percent of all deaths. Taking into account the years of life lost, we conclude that the costs of austerity significantly exceeded the benefits derived from reduced public expenditure.

Item Type:	Monograph (Working Paper)
Additional Information:	© 2024 The Author(s)
Divisions:	LSE International Inequalities Institute
Date Deposited:	19 Jun 2024 08:39
Last Modified:	14 Sep 2024 04:47
URI:	http://eprints.lse.ac.uk/id/eprint/123915

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