We explore the effects of income and, additionally education on the income,
self-reported health and survival of people aged sixty-five and over in order to
identify benefits resulting from education which are omitted in the conventional
analysis with its focus on labour income excluding employer contributions. We
find, for men, that income after the age of sixty-five is significantly influenced
by educational attainment and has a signficant effect on survival. Even after
controlling for circumstances at age sixty-five or when first observed, we identify

Note: This paper has been revised and is replaced by DP 393. We explore the effects of income and, additionally education on the income, self-reported health and survival of people aged sixty-five and over in order to identify benefits resulting from education which are omitted in the conventional analysis with its focus on labour income excluding employer contributions. We find that well educated people enjoy substantially higher incomes and longer healthy lives.