Women live longer than men, but they spend more life years with health-impairment. This article examines the extent to which this gender paradox can be explained by two factors: the "mortality effect," which results from the higher life expectancy of women, and "differential item functioning" (DIF), which refers to gender differences in reporting behavior. Impaired life expectancy at age50 is calculated for the health indicators general health, limitations, and chronic morbidity using the Sullivan method. Data on health prevalence are obtained from the 2012 survey "Gesundheit in Deutschland aktuell" (GEDA), data on mortality is taken from the Human Mortality Database. The gender difference in impaired life expectancy is decomposed into the mortality effect and the health effect. The latter is finally adjusted for DIF effects on the basis of vignettes from the 2004 SHARE survey. The gender paradox can be resolved not only partially but completely for all three health indicators considered by the mortality effect and DIF. After taking these two factors into account, the gender difference in impaired life expectancy reverses from higher values for women to higher values for men. The causes of the gender paradox are highly complex and the differences between women and men in total and impaired life expectancy are not necessarily going into contradictory directions. The extent of women's higher impaired life expectancy depends decisively on the underlying health indicator and is largely explained by the mortality effect.