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Fatal attraction? Access to early retirement and mortality

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  • Andreas Kuhn
  • Jean-Philippe 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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Bibliographic Info

Paper provided by Institute for Empirical Research in Economics - University of Zurich in its series IEW - Working Papers with number 499.

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Date of creation: Aug 2010
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Handle: RePEc:zur:iewwpx:499

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

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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. Sahlgren, Gabriel H., 2012. "Work ‘til You Drop: Short- and Longer-Term Health Effects of Retirement in Europe," Working Paper Series, Research Institute of Industrial Economics 928, Research Institute of Industrial Economics.
  2. Kuhn, Michael & Wrzaczek, Stefan & Prskawetz, Alexia & Feichtinger, Gustav, 2012. "Optimal choice of health and retirement in a life-cycle model," ECON WPS - Vienna University of Technology Working Papers in Economic Theory and Policy 01/2012, Vienna University of Technology, Institute for Mathematical Methods in Economics, Research Group Economics (ECON).
  3. Hernaes, Erik & Markussen, Simen & Piggott, John & Vestad, Ola, 2012. "Does Retirement Age Impact Mortality?," Memorandum, Oslo University, Department of Economics 19/2012, Oslo University, Department of Economics.
  4. Hallberg, Daniel & Johansson, Per & Josephson, Malin, 2014. "Early retirement and post retirement health," Working Paper Series, Center for Labor Studies, Uppsala University, Department of Economics 2014:5, Uppsala University, Department of Economics.
  5. Johansson Per & Laun Lisa & Laun Tobias, 2014. "Screening Stringency in the Disability Insurance Program," The B.E. Journal of Economic Analysis & Policy, De Gruyter, De Gruyter, vol. 14(3), pages 19, July.
  6. Eibich, P.;, 2014. "Understanding the effect of retirement on health using Regression Discontinuity Design," Health, Econometrics and Data Group (HEDG) Working Papers, HEDG, c/o Department of Economics, University of York 14/10, HEDG, c/o Department of Economics, University of York.
  7. Tibor Hanappi, 2012. "Retirement Behaviour in Austria: Incentive Effects on Old-Age Labor Supply," NRN working papers, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria 2012-13, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.

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