Does Retirement Kill You? Evidence from Early Retirement Windows
AbstractThe magnitude of the effect that health has on the retirement decision has long been studied. We examine the reverse relationship, whether or not retirement has a direct impact on later-life health. In order to identify the causal relationship, we use unexpected early retirement window offers to instrument for retirement behavior. They are legally required to be unrelated to the baseline health of the individual, and are significant predictors of retirement. We find that there is no negative effect of early retirement on men's health, and if anything, a temporary increase in self-reported health and improvements in health of highly educated workers. While this is consistent with previous literature using Social Security ages as instruments, we also find some evidence that anticipation of retirement might also be important, and might bias the previous estimates towards zero.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3817.
Length: 31 pages
Date of creation: Nov 2008
Date of revision:
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Other versions of this item:
- Coe, N.B. & Lindeboom, M., 2008. "Does Retirement Kill You? Evidence from Early Retirement Windows," Discussion Paper 2008-93, Tilburg University, Center for Economic Research.
- I12 - Health, Education, and Welfare - - Health - - - Health Production
- J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
- J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
This paper has been announced in the following NEP Reports:
- NEP-AGE-2008-11-25 (Economics of Ageing)
- NEP-ALL-2008-11-25 (All new papers)
- NEP-HEA-2008-11-25 (Health Economics)
- NEP-LAB-2008-11-25 (Labour Economics)
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