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Health Shocks and the Hazard Rate of Early Retirement in the ECHP

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Author Info
Ronald Hagan
Andrew M. Jones
Nigel Rice

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Abstract

In this paper we use discrete-time proportional hazard models with internationally comparable longitudinal data from the full eight waves of the European Community Household Panel (ECHP) to study the relationship between retirement, health levels and health shocks in nine European countries. The results show a consistency of effect with only small variation in magnitude both for latent health stock variables as well as the subjective SAH measures. This is compatible with previous findings that declining health is associated with an increased probability of retirement. Additionally a three-level graduated acute health shock variable was created, that shows evidence of a gradient in the effect.

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Publisher Info
Article provided by Swiss Society of Economics and Statistics (SSES) in its journal Swiss Journal of Economics and Statistics.

Volume (Year): 144 (2008)
Issue (Month): III (September)
Pages: 323-335
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Handle: RePEc:ses:arsjes:2008-iii-3

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Related research
Keywords: Retirement; Health; ECHP; European Union;

Find related papers by JEL classification:
H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
I12 - Health, Education, and Welfare - - Health - - - Health Production
J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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  1. Franco Peracchi, 2002. "The European Community Household Panel: A review," Empirical Economics, Springer, vol. 27(1), pages 63-90. [Downloadable!] (restricted)
  2. Cheti Nicoletti & Franco Peracchi, 2005. "Survey response and survey characteristics: microlevel evidence from the European Community Household Panel," Journal Of The Royal Statistical Society Series A, Royal Statistical Society, vol. 168(4), pages 763-781. [Downloadable!] (restricted)
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  3. Currie, Janet & Madrian, Brigitte C., 1999. "Health, health insurance and the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 50, pages 3309-3416 Elsevier. [Downloadable!] (restricted)
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  4. Bound, John & Schoenbaum, Michael & Stinebrickner, Todd R. & Waidmann, Timothy, 1999. "The dynamic effects of health on the labor force transitions of older workers," Labour Economics, Elsevier, vol. 6(2), pages 179-202, June. [Downloadable!] (restricted)
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  5. Regina T. Riphahn, 1999. "Income and employment effects of health shocks A test case for the German welfare state," Journal of Population Economics, Springer, vol. 12(3), pages 363-389. [Downloadable!] (restricted)
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This page was last updated on 2009-11-27.


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