Health, Pensions, and the Retirement Decision: Evidence from Canada
AbstractUsing longitudinal data from the Canadian Survey of Labour and Income Dynamics, I use an option value framework to examine the effects of health and employer provided pensions on retirement decisions. This study fills existing gaps in the literature by jointly modeling the impact of financial incentives and health on the retirement decisions of Canadians. The results indicate that both factors have substantial and significant effects on retirement, as having poor health increases the likelihood of entering retirement by up to 25 percentage points. Given the longitudinal aspect of the data, I am also able to address several identification issues discussed in the literature. The results corroborate previous evidence regarding the relative importance of attenuation and justification bias in self-reported health measures. The results also confirm U.S. and European evidence that employer-provided pensions and health are significant determinants of retirement.
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Bibliographic InfoPaper provided by Wilfrid Laurier University, Department of Economics in its series Working Papers with number eg0046.
Date of creation: 2007
Date of revision: 2007
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Web page: http://www.wlu.ca/sbe/economics/
More information through EDIRC
Retirement; Private Pensions; Health;
Find related papers by JEL classification:
- J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
- I10 - Health, Education, and Welfare - - Health - - - General
This paper has been announced in the following NEP Reports:
- NEP-AGE-2007-12-08 (Economics of Ageing)
- NEP-ALL-2007-12-08 (All new papers)
- NEP-HEA-2007-12-08 (Health Economics)
- NEP-LAB-2007-12-08 (Labour Economics)
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- Pierre Lefebvre & Philip Merrigan & Pierre-Carl Michaud, 2011.
"The Recent Evolution of Retirement Patterns in Canada,"
Cahiers de recherche
- Pierre Lefebvre & Philip Merrigan & Pierre-Carl Michaud, 2011. "The Recent Evolution of Retirement Patterns in Canada," Social and Economic Dimensions of an Aging Population Research Papers 287, McMaster University.
- Lefebvre, Pierre & Merrigan, Philip & Michaud, Pierre-Carl, 2011. "The Recent Evolution of Retirement Patterns in Canada," IZA Discussion Papers 5979, Institute for the Study of Labor (IZA).
- Pierre-Carl Michaud & Philip Merrigan & Pierre Lefebvre, 2012. "The Recent Evolution of Retirement Patterns in Canada," CIRANO Working Papers 2012s-37, CIRANO.
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