Advanced Search
MyIDEAS: Login to save this paper or follow this series

Sick of work or too sick to work? Evidence on health shocks and early retirement from the BHPS

Contents:

Author Info

  • Nigel Rice
  • Jennifer Roberts

    ()
    (Department of Economics, The University of Sheffield)

  • Andrew M. Jones

Abstract

We follow individuals as they retire using discrete-time hazard models applied to a stock sample from 12 waves of the British Household Panel Survey. Results confirm that health shocks are a determinant of retirement age and are quantitatively more important than pension entitlement. This is the case for both men and women and is observed for both a measure of health limitations and a measure of latent health status obtained from a generalized ordered probit model. Further, our results provide evidence that, for women, the health status of their partner impacts on their retirement decisions; an effect that is not evident for men.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.shef.ac.uk/content/1/c6/06/33/16/SERP2007002.pdf
Our checks indicate that this address may not be valid because: 404 Not Found (http://www.shef.ac.uk/content/1/c6/06/33/16/SERP2007002.pdf [301 Moved Permanently]--> http://www.sheffield.ac.uk/content/1/c6/06/33/16/SERP2007002.pdf). If this is indeed the case, please notify (Georgios Efthyvoulou)
File Function: First version, 2007
Download Restriction: no

File URL: http://www.shef.ac.uk/content/1/c6/06/33/16/SERP2007002.pdf
Our checks indicate that this address may not be valid because: 404 Not Found (http://www.shef.ac.uk/content/1/c6/06/33/16/SERP2007002.pdf [301 Moved Permanently]--> http://www.sheffield.ac.uk/content/1/c6/06/33/16/SERP2007002.pdf). If this is indeed the case, please notify (Georgios Efthyvoulou)
File Function: Revised version, 2007
Download Restriction: no

Bibliographic Info

Paper provided by The University of Sheffield, Department of Economics in its series Working Papers with number 2007002.

as in new window
Length: 37 pages
Date of creation: Jan 2007
Date of revision: Jan 2007
Handle: RePEc:shf:wpaper:2007002

Contact details of provider:
Postal: 9 Mappin Street, SHEFFIELD, S1 4DT
Phone: +44 114 222 3399
Fax: + 44 (0)114 222 3458
Email:
Web page: http://www.shef.ac.uk/economics
More information through EDIRC

Related research

Keywords: Health; Retirement; Discrete-time duration models;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Michaud, P.C., 2003. "Joint Labour Supply Dynamics of Older Couples," Discussion Paper, Tilburg University, Center for Economic Research 2003-69, Tilburg University, Center for Economic Research.
  2. Blau, David M. & Riphahn, Regina T., 1998. "Labor Force Transitions of Older Married Couples in Germany," IZA Discussion Papers 5, Institute for the Study of Labor (IZA).
  3. John Bound & Michael Schoenbaum & Todd R. Stinebrickner & Timothy Waidmann, 1998. "The Dynamic Effects of Health on the Labor Force Transitions of Older Workers," NBER Working Papers 6777, National Bureau of Economic Research, Inc.
  4. Robin L. Lumsdaine & Olivia S. Mitchell, . "New Developments in the Economic Analysis of Retirement," Pension Research Council Working Papers 98-8, Wharton School Pension Research Council, University of Pennsylvania.
  5. Lindeboom, Maarten & van Doorslaer, Eddy, 2004. "Cut-Point Shift and Index Shift in Self-Reported Health," IZA Discussion Papers 1286, Institute for the Study of Labor (IZA).
  6. John Bound, 1991. "Self-Reported Versus Objective Measures of Health in Retirement Models," Journal of Human Resources, University of Wisconsin Press, vol. 26(1), pages 106-138.
  7. Regina T. Riphahn, 1999. "Income and employment effects of health shocks A test case for the German welfare state," Journal of Population Economics, Springer, Springer, vol. 12(3), pages 363-389.
  8. Andrew M Jones & Xander Koolman & Nigel Rice, 2005. "Health-related non-response in the BHPS and ECHP: using inverse probability weighted estimators in nonlinear models," Health, Econometrics and Data Group (HEDG) Working Papers, HEDG, c/o Department of Economics, University of York 05/05, HEDG, c/o Department of Economics, University of York.
  9. Jenkins, Stephen P, 1995. "Easy Estimation Methods for Discrete-Time Duration Models," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(1), pages 129-38, February.
  10. Kathryn H. Anderson & Richard V. Burkhauser, 1985. "The Retirement-Health Nexus: A New Measure of an Old Puzzle," Journal of Human Resources, University of Wisconsin Press, vol. 20(3), pages 315-330.
  11. Bruce D. Meyer, 1988. "Unemployment Insurance And Unemployment Spells," NBER Working Papers 2546, National Bureau of Economic Research, Inc.
  12. Griliches, Zvi, 1974. "Errors in Variables and Other Unobservables," Econometrica, Econometric Society, Econometric Society, vol. 42(6), pages 971-98, November.
  13. Richard Disney & Carl Emmerson & Matthew Wakefield, 2003. "Ill health and retirement in Britain: a panel data based analysis," IFS Working Papers, Institute for Fiscal Studies W03/02, Institute for Fiscal Studies.
  14. Gloria J. Bazzoli, 1985. "The Early Retirement Decision: New Empirical Evidence on the Influence of Health," Journal of Human Resources, University of Wisconsin Press, vol. 20(2), pages 214-234.
  15. Meghir, Costas & Whitehouse, Edward, 1997. "Labour market transitions and retirement of men in the UK," Journal of Econometrics, Elsevier, Elsevier, vol. 79(2), pages 327-354, August.
  16. Richard Disney & Costas Meghir & Edward Whitehouse, 1994. "Retirement behaviour in Britain," Fiscal Studies, Institute for Fiscal Studies, vol. 15(1), pages 24-43, February.
  17. Paul Contoyannis & Andrew M. Jones & Nigel Rice, 2004. "The dynamics of health in the British Household Panel Survey," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 19(4), pages 473-503.
  18. Verbeek, M. & Nijman, T., 1990. "Testing For Selectivity Bias In Panel Data Models," Papers, Tilburg - Center for Economic Research 9018, Tilburg - Center for Economic Research.
  19. Narendranathan, W & Stewart, Mark B, 1993. "How Does the Benefit Effect Vary as Unemployment Spells Lengthen?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 8(4), pages 361-81, Oct.-Dec..
  20. Richard Blundell & Costas Meghir & Sarah Smith, 2002. "Pension Incentives and the Pattern of Early Retirement," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 112(478), pages C153-C170, March.
  21. Jiménez-Martín, Sergi & Labeaga, José M. & Martínez Granado, Maite, 1999. "Health status and retirement decisions for older European couples," IRISS Working Paper Series, IRISS at CEPS/INSTEAD 1999-01, IRISS at CEPS/INSTEAD.
  22. Hurd, Michael D, 1990. "Research on the Elderly: Economic Status, Retirement, and Consumption and Saving," Journal of Economic Literature, American Economic Association, vol. 28(2), pages 565-637, June.
  23. Nijman, T.E. & Verbeek, M.J.C.M., 1992. "Testing for selectivity in panel data models," Open Access publications from Tilburg University urn:nbn:nl:ui:12-153280, Tilburg University.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Hernández-Quevedo, Cristina & Jones, Andrew M. & Rice, Nigel, 2008. "Persistence in health limitations: A European comparative analysis," Journal of Health Economics, Elsevier, Elsevier, vol. 27(6), pages 1472-1488, December.
  2. Roberts, J & Rice, N & Jones, A.M, 2008. "Early retirement and inequality in Britain and Germany: How important is health?," Health, Econometrics and Data Group (HEDG) Working Papers, HEDG, c/o Department of Economics, University of York 08/27, HEDG, c/o Department of Economics, University of York.
  3. Danilo Cavapozzi, 2008. "Health and Labor Supply Dynamics of Older Married Workers," "Marco Fanno" Working Papers 0073, Dipartimento di Scienze Economiche "Marco Fanno".
  4. Dhaval Dave & R. Inas Rashad & Jasmina Spasojevic, 2008. "The Effects of Retirement on Physical and Mental Health Outcomes," Southern Economic Journal, Southern Economic Association, vol. 75(2), pages 497-523, October.
  5. Stefanie Schurer, 2008. "Discrete Heterogeneity in the Impact of Health Shocks on Labour Market Outcomes," Ruhr Economic Papers, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen 0071, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  6. Sarah Brown & Jenny Roberts & Karl Taylor, 2008. "Reservation Wages, Labour Market Participation And Health," Working Papers, The University of Sheffield, Department of Economics 2008002, The University of Sheffield, Department of Economics, revised Feb 2008.
  7. García-Gómeza, P & Jones, A.M & Rice, N, 2008. "Health effects on labour market exits and entries," Health, Econometrics and Data Group (HEDG) Working Papers, HEDG, c/o Department of Economics, University of York 08/03, HEDG, c/o Department of Economics, University of York.
  8. Sergi Jimenez-Martin & Jose M. Labeaga & Cristina Vilaplana Prieto, 2007. "Award errors and permanent disability benefits in Spain," Health, Econometrics and Data Group (HEDG) Working Papers, HEDG, c/o Department of Economics, University of York 07/04, HEDG, c/o Department of Economics, University of York.
  9. Stefanie Behncke, 2009. "How Does Retirement Affect Health?," University of St. Gallen Department of Economics working paper series 2009, Department of Economics, University of St. Gallen 2009-13, Department of Economics, University of St. Gallen.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:shf:wpaper:2007002. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Georgios Efthyvoulou).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.