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Adverse effects of widowhood in Europe
1The University of Edinburgh, 31 Buccleuch Place, Edinburgh EH8 9JT, UK.
Abstract:
I investigate the relationship between widowhood and the financial situation among women aged 50 and above in Europe. The results of the paper are based on the Survey of Health, Ageing and Retirement in Europe, and its retrospective third wave (SHARELIFE). Using retrospective data makes it possible to analyze the dynamics of the adverse effects of widowhood. I estimate both the short run and long run effects of widowhood on financial circumstances, health, and labor force status. I argue that not only the lack of the deceased husband's income, but also the worse health condition and earlier retirement of widows contribute to the unfavorable financial conditions, although these indirect effects are small. I also analyze the role survivors' pensions have in mitigating the adverse effects of widowhood, and provide evidence for varying compensating effects of survivors' pensions in the European countries analyzed.
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