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Early Retirement and Post Retirement Health

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  • Hallberg, Daniel

    ()
    (Swedish Social Insurance Inspectorate (ISF))

  • Johansson, Per

    ()
    (IFAU)

  • Josephson, Malin

    ()
    (Swedish Social Insurance Inspectorate (ISF))

Abstract

This paper studies empirically the consequences of retirement on health. We make use of a targeted retirement offer to army employees 55 years of age or older. Before the offer was implemented in the Swedish defense, the normal retirement age was 60 years of age. Estimating the effect of the offer on individuals' health within the age range 56-70, we find support for a reduction in both mortality and in inpatient care as a consequence of the early retirement offer. Increasing the mandatory retirement age may thus not only have positive government income effects but also negative effects on increasing government health care expenditures.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 8260.

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Length: 44 pages
Date of creation: Jun 2014
Date of revision:
Handle: RePEc:iza:izadps:dp8260

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Keywords: health; mortality; inpatient care; retirement; health care; pensions; occupational pensions;

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  1. Hult, Carl & Stattin, Mikael & Janlert, Urban & Järvholm, Bengt, 2010. "Timing of retirement and mortality - A cohort study of Swedish construction workers," Social Science & Medicine, Elsevier, Elsevier, vol. 70(10), pages 1480-1486, May.
  2. Hernaes, Erik & Markussen, Simen & Piggott, John & Vestad, Ola, 2012. "Does Retirement Age Impact Mortality?," Memorandum, Oslo University, Department of Economics 19/2012, Oslo University, Department of Economics.
  3. Lori G. Kletzer, 1998. "Job Displacement," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 12(1), pages 115-136, Winter.
  4. Kerwin Kofi Charles, 2002. "Is Retirement Depressing?: Labor Force Inactivity and Psychological Well-Being in Later Life," NBER Working Papers 9033, National Bureau of Economic Research, Inc.
  5. Bloemen, H.; & Hochguertel, S.; & Zweering, J.;, 2013. "The Causal Effect of Retirement on Mortality: Evidence from Targeted Incentives to Retire Early," Health, Econometrics and Data Group (HEDG) Working Papers, HEDG, c/o Department of Economics, University of York 13/22, HEDG, c/o Department of Economics, University of York.
  6. Black, Sandra E. & Devereux, Paul J. & Salvanes, Kjell G., 2012. "Losing Heart? The Effect of Job Displacement on Health," IZA Discussion Papers 7117, Institute for the Study of Labor (IZA).
  7. Marcus Eliason & Donald Storrie, 2009. "Does Job Loss Shorten Life?," Journal of Human Resources, University of Wisconsin Press, vol. 44(2).
  8. Hans Bloemen & Stefan Hochguertel, 2013. "The Causal Effect of Retirement on Mortality - Evidence from Targeted Incentives to retire early," Tinbergen Institute Discussion Papers 13-119/V, Tinbergen Institute.
  9. Kuhn, Andreas & Wuellrich, Jean-Philippe & Zweimüller, Josef, 2010. "Fatal Attraction? Access to Early Retirement and Mortality," IZA Discussion Papers 5160, Institute for the Study of Labor (IZA).
  10. Kristiina Huttunen & Jarle Møen & Kjell G. Salvanes, 2011. "How Destructive Is Creative Destruction? Effects Of Job Loss On Job Mobility, Withdrawal And Income," Journal of the European Economic Association, European Economic Association, European Economic Association, vol. 9(5), pages 840-870, October.
  11. Eliason, Marcus & Storrie, Donald, 2009. "Job loss is bad for your health - Swedish evidence on cause-specific hospitalization following involuntary job loss," Social Science & Medicine, Elsevier, Elsevier, vol. 68(8), pages 1396-1406, April.
  12. Coe, Norma B. & Lindeboom, Maarten, 2008. "Does Retirement Kill You? Evidence from Early Retirement Windows," IZA Discussion Papers 3817, Institute for the Study of Labor (IZA).
  13. 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.
  14. Marcus Eliason, 2011. "Income after job loss: the role of the family and the welfare state," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 43(5), pages 603-618.
  15. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 80(2), pages 223-55, March-Apr.
  16. Browning, Martin & Heinesen, Eskil, 2012. "Effect of job loss due to plant closure on mortality and hospitalization," Journal of Health Economics, Elsevier, Elsevier, vol. 31(4), pages 599-616.
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