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The Health Consequences of Retirement

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  • Michael Insler

Abstract

This paper examines the impact of retirement on individuals’ health. Declines in health commonly compel workers to retire, so the challenge is to disentangle the simultaneous causal effects. The estimation strategy employs an instrumental variables specification. The instrument is based on workers’ self-reported probabilities of working past ages 62 and 65, taken from the first period in which they are observed. Results indicate that the retirement effect on health is beneficial and significant. Investigation into behavioral data, such as smoking and exercise, suggests that retirement may affect health through such channels. With additional leisure time, many retirees practice healthier habits.

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File URL: http://jhr.uwpress.org/cgi/reprint/49/1/195
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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 49 (2014)
Issue (Month): 1 ()
Pages: 195-233

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Handle: RePEc:uwp:jhriss:v:49:y:2014:i:1:p:195-233

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Web page: http://jhr.uwpress.org/

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  1. Debra Sabatini Dwyer & Olivia S. Mitchell, 1998. "Health Problems as Determinants of Retirement: Are Self-Rated Measures Endogenous?," NBER Working Papers 6503, National Bureau of Economic Research, Inc.
  2. Thomas C. Buchmueller & Robert G. Valletta, 1999. "The Effect of Health Insurance on Married Female Labor Supply," Journal of Human Resources, University of Wisconsin Press, University of Wisconsin Press, vol. 34(1), pages 42-70.
  3. Coe, Norma B. & Zamarro, Gema, 2011. "Retirement effects on health in Europe," Journal of Health Economics, Elsevier, Elsevier, vol. 30(1), pages 77-86, January.
  4. Dhaval Dave & Inas Rashad & Jasmina Spasojevic, 2006. "The Effects of Retirement on Physical and Mental Health Outcomes," NBER Working Papers 12123, National Bureau of Economic Research, Inc.
  5. Kathryn H. Anderson & Richard V. Burkhauser, 1985. "The Retirement-Health Nexus: A New Measure of an Old Puzzle," Journal of Human Resources, University of Wisconsin Press, University of Wisconsin Press, vol. 20(3), pages 315-330.
  6. Michael Baker & Mark Stabile & Catherine Deri, 2004. "What Do Self-Reported, Objective, Measures of Health Measure?," Journal of Human Resources, University of Wisconsin Press, University of Wisconsin Press, vol. 39(4).
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Health and Retirement
    by UDADISI in UDADISI on 2013-05-14 22:48:00
  2. Thinking Of Retiring? Consider Your Health
    by ? in Health on 2014-03-25 20:00:00
  3. Thinking Of Retiring? Consider Your Health
    by ? in Shots - Health News on 2014-03-25 20:00:00
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Cited by:
  1. Andrew Beauchamp & Mathis Wagner, 2012. "Dying to Retire: Adverse Selection and Welfare in Social Security," Boston College Working Papers in Economics, Boston College Department of Economics 818, Boston College Department of Economics, revised 15 Aug 2013.
  2. Kevin x.d. Huang & Hui He & Sheng-ti Hung, 2013. "Substituting Leisure for Health Expenditure: A General Equilibrium-Based Empirical Investigation," Vanderbilt University Department of Economics Working Papers, Vanderbilt University Department of Economics 13-00020, Vanderbilt University Department of Economics.
  3. Eibich, P.;, 2014. "Understanding the effect of retirement on health using Regression Discontinuity Design," Health, Econometrics and Data Group (HEDG) Working Papers, HEDG, c/o Department of Economics, University of York 14/10, HEDG, c/o Department of Economics, University of York.
  4. Kevin X. D. Huang & Hui He, 2013. "Why Do Americans Spend So Much More on Health Care than Europeans?," Vanderbilt University Department of Economics Working Papers, Vanderbilt University Department of Economics 13-00021, Vanderbilt University Department of Economics.
  5. Sahlgren, Gabriel H., 2012. "Work ‘til You Drop: Short- and Longer-Term Health Effects of Retirement in Europe," Working Paper Series, Research Institute of Industrial Economics 928, Research Institute of Industrial Economics.
  6. Hui He & Kevin x.d. Huang, 2013. "Why Do Americans Spend So Much More on Health Care than Europeans?--A General Equilibrium Macroeconomic Analysis," Vanderbilt University Department of Economics Working Papers, Vanderbilt University Department of Economics 13-00005, Vanderbilt University Department of Economics.

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