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Early Retirement and Public Disability Insurance Applications: Exploring the Impact of Depression

Author

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  • Rena M. Conti
  • Ernst R. Berndt
  • Richard G. Frank

Abstract

This paper investigates the impact of depression on labor force participation among older workers. Empirically, we use two analytic strategies and rely on a sample drawn from the Health and Retirement Survey. Depression directly and indirectly increases individuals' probability of retiring early and applying for DI benefits, after accounting for other predictors of labor force exit. Accounting for the independent effects of depression, disability associated with physical illness may be smaller than the official statistics suggest. There may be great economic gains in increasing depression treatment awareness and access to treatment for individuals, employers and society.

Suggested Citation

  • Rena M. Conti & Ernst R. Berndt & Richard G. Frank, 2006. "Early Retirement and Public Disability Insurance Applications: Exploring the Impact of Depression," NBER Working Papers 12237, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:12237
    Note: AG EH PE
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Jürgen Maurer & Roger Klein & Francis Vella, 2011. "Subjective Health Assessments and Active Labor Market Participation of Older Men: Evidence from a Semiparametric Binary Choice Model with Nonadditive Correlated Individual-specific Effects," The Review of Economics and Statistics, MIT Press, vol. 93(3), pages 764-774, August.
    2. Wang, Yang & Yang, Muzhe, 2013. "Crisis-induced depression, physical activity and dietary intake among young adults: Evidence from the 9/11 terrorist attacks," Economics & Human Biology, Elsevier, vol. 11(2), pages 206-220.
    3. repec:dau:papers:123456789/7972 is not listed on IDEAS
    4. Van Bui & Michael Stolpe, 2010. "The impact of new drug launches on the loss of labor from disease and injury: evidence from German panel data," International Journal of Health Economics and Management, Springer, vol. 10(4), pages 315-346, December.
    5. Behncke S, 2009. "How Does Retirement Affect Health?," Health, Econometrics and Data Group (HEDG) Working Papers 09/11, HEDG, c/o Department of Economics, University of York.
    6. Bui, Thi Mai Van & Stolpe, Michael, 2007. "The impact of new drug launches on the loss of labor from disease and injury: evidence from German panel data," Kiel Working Papers 1317, Kiel Institute for the World Economy (IfW Kiel).
    7. Jason M. Fletcher, 2008. "Adolescent depression: diagnosis, treatment, and educational attainment," Health Economics, John Wiley & Sons, Ltd., vol. 17(11), pages 1215-1235.
    8. Jason M. Fletcher, 2008. "Adolescent depression: diagnosis, treatment, and educational attainment," Health Economics, John Wiley & Sons, Ltd., vol. 17(11), pages 1215-1235, November.
    9. Renna, F. & Thakur, Nidhi, 2010. "Direct and indirect effects of obesity on U.S. labor market outcomes of older working age adults," Social Science & Medicine, Elsevier, vol. 71(2), pages 405-413, July.

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    More about this item

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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