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Unhealthy retirement? Evidence of occupation heterogeneity

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Author Info

  • Fabrizio Mazzonna

    (IDEP and CEPRA, Facoltà di scienze economiche, Università della Svizzera italiana, Svizzera.)

  • Franco Peracchi

    ()
    (Istituto Einaudi per l'Economia e la Finanza (EIEF) and Dipartimento di Economia e Finanza Facoltà di Economia Università degli Studi di Roma "Tor Vergataâ€, Roma, Italia.)

Abstract

We investigate the causal effect of retirement on health and cognitive abilities by exploiting the variation between and within European countries in old age retirement rules. We show negative and significant effect of retirement on both health and cognitive abilities. We also show evidence of significant heterogeneity across occupational groups. In particular, the negative effect of retirement disappears and turn to be even positive for those working in very physically demanding jobs.

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Bibliographic Info

Paper provided by USI Università della Svizzera italiana in its series IdEP Economic Papers with number 1401.

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Length: 33 pages
Date of creation: 08 Feb 2014
Date of revision:
Handle: RePEc:lug:wpidep:1401

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Web page: https://www.bul.sbu.usi.ch

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Keywords: Aging; cognitive abilities; retirement; occupation; SHARE;

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  1. Norma B. Coe & Gema Zamarro, 2008. "Retirement Effects on Health in Europe," Working Papers 588, RAND Corporation Publications Department.
  2. Susann Rohwedder & Robert J. Willis, 2010. "Mental Retirement," Journal of Economic Perspectives, American Economic Association, vol. 24(1), pages 119-38, Winter.
  3. Bonsang, Eric & Adam, Stéphane & Perelman, Sergio, 2012. "Does retirement affect cognitive functioning?," Journal of Health Economics, Elsevier, vol. 31(3), pages 490-501.
  4. B. d'Hombres & L. Rocco & M. Suhrcke & M. McKee, 2010. "Does social capital determine health? Evidence from eight transition countries," Health Economics, John Wiley & Sons, Ltd., vol. 19(1), pages 56-74.
  5. Kevin Neuman, 2008. "Quit Your Job and Get Healthier? The Effect of Retirement on Health," Journal of Labor Research, Springer, vol. 29(2), pages 177-201, June.
  6. Jonathan Gruber & David A. Wise, 2004. "Social Security Programs and Retirement around the World: Micro-Estimation," NBER Books, National Bureau of Economic Research, Inc, number grub04-1.
  7. Johnston, David W. & Lee, Wang-Sheng, 2009. "Retiring to the good life? The short-term effects of retirement on health," Economics Letters, Elsevier, vol. 103(1), pages 8-11, April.
  8. Fabrizio Mazzona & Franco Peracchi, 2010. "Ageing, cognitive abilities and retirement," EIEF Working Papers Series 1015, Einaudi Institute for Economics and Finance (EIEF), revised Jan 2012.
  9. James Banks & Fabrizio Mazzonna, 2012. "The Effect of Education on Old Age Cognitive Abilities: Evidence from a Regression Discontinuity Design," Economic Journal, Royal Economic Society, vol. 122(560), pages 418-448, 05.
  10. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-55, March-Apr.
  11. Bingley, Paul & Martinello, Alessandro, 2013. "Mental retirement and schooling," European Economic Review, Elsevier, vol. 63(C), pages 292-298.
  12. Mazzonna, Fabrizio, 2014. "The long lasting effects of education on old age health: Evidence of gender differences," Social Science & Medicine, Elsevier, vol. 101(C), pages 129-138.
  13. Viola Angelini & Agar Brugiavini & Guglielmo Weber, 2009. "Ageing and unused capacity in Europe: is there an early retirement trap?," Economic Policy, CEPR & CES & MSH, vol. 24, pages 463-508, 07.
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