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The Causal Effect of Retirement on Health: Understanding the Mechanisms

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  • Dai Binh Tran
  • Vasileios Zikos

Abstract

This article examines the direct effects of retirement on health, as well as its indirect effects, through a mediation analysis. Using Australian panel data, analysis reveals that changes in retirement status and retirement duration imply positive causal effects on self‐assessed health as well as physical health and mental health. Gender plays an important role in shaping these relationships. For women, the positive relationship between retirement duration and health can be attributed to physical activity. In contrast, men appear to enjoy better health when staying retired for longer because they participate more in outdoor activities.

Suggested Citation

  • Dai Binh Tran & Vasileios Zikos, 2019. "The Causal Effect of Retirement on Health: Understanding the Mechanisms," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 52(4), pages 427-446, December.
    • Handle: RePEc:bla:ausecr:v:52:y:2019:i:4:p:427-446
    DOI: 10.1111/1467-8462.12340
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    Cited by:

    1. Raquel Fonseca & Hugo Morin & Ana I. Moro-Egido, 2021. "Stress and Retirement," Cahiers de recherche / Working Papers 2103, Chaire de recherche sur les enjeux économiques intergénérationnels / Research Chair in Intergenerational Economics.
    2. Feng, Jin & Xie, Qiang & Zhang, Xiaohan, 2021. "Trade liberalization and the health of working-age adults: Evidence from China," World Development, Elsevier, vol. 139(C).
    3. Mattia Filomena & Matteo Picchio, 2023. "Retirement and health outcomes in a meta‐analytical framework," Journal of Economic Surveys, Wiley Blackwell, vol. 37(4), pages 1120-1155, September.
    4. Nguyen, Ha Trong & Mitrou, Francis & Zubrick, Stephen R., 2024. "Retirement, housing mobility, downsizing and neighbourhood quality - A causal investigation," Journal of Housing Economics, Elsevier, vol. 63(C).
    5. Motegi, Hiroyuki & Nishimura, Yoshinori & Oikawa, Masato, 2020. "Retirement and health investment behaviors: An international comparison," The Journal of the Economics of Ageing, Elsevier, vol. 16(C).

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