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Fatal Attraction? Access to Early Retirement and Mortality

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Author Info

  • Andreas Kuhn

    ()

  • Jean-Philipe Wuellrich
  • Josef Zweimüller

Abstract

We estimate the causal effect of early retirement on mortality for blue-collar workers. To overcome the problem of endogenous selection, we exploit an exogenous change in unemployment insurance rules in Austria that allowed workers in eligible regions to withdraw from the workforce up to 3.5 years earlier than those in non-eligible regions. For males, instrumental-variable estimates show a significant 2.4 percentage points (about 13%) increase in the probability of dying before age 67. We do not find any adverse effect of early retirement on mortality for females. Death causes indicate a significantly higher incidence of cardiovascular disorders among eligible workers, suggesting that changes in health-related behavior explain increased mortality among male early retirees.

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File URL: http://www.labornrn.at/wp/2010/wp1008.pdf
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Bibliographic Info

Paper provided by The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria in its series NRN working papers with number 2010-08.

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Length: 57 pages
Date of creation: Aug 2010
Date of revision:
Handle: RePEc:jku:nrnwps:2010_08

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Postal: NRN Labor Economics and the Welfare State, c/o Rudolf Winter-Ebmer, Altenbergerstr. 69, 4040 Linz
Phone: +43-732-2468-8216
Fax: +43-732-2468-8217
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Web page: http://www.labornrn.at/
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Related research

Keywords: early retirement; mortality; premature death; health behavior; endogeneity; instrumental variable;

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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. How Retirement Just May Kill You
    by Ariel Goldring in Free Market Mojo on 2010-09-17 11:13:12
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Cited by:
  1. Kuhn, Michael & Wrzaczek, Stefan & Prskawetz, Alexia & Feichtinger, Gustav, 2011. "Optimal Choice of Health and Retirement in a Life-Cycle Model," Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis 48681, Verein für Socialpolitik / German Economic Association.
  2. Tibor Hanappi, 2012. "Retirement Behaviour in Austria: Incentive Effects on Old-Age Labor Supply," NRN working papers 2012-13, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
  3. Sahlgren, Gabriel H., 2012. "Work ‘til You Drop: Short- and Longer-Term Health Effects of Retirement in Europe," Working Paper Series 928, Research Institute of Industrial Economics.
  4. Hernaes, Erik & Markussen, Simen & Piggott, John & Vestad, Ola, 2012. "Does Retirement Age Impact Mortality?," Memorandum 19/2012, Oslo University, Department of Economics.

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