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Pension reforms, longer working horizons and depression. Does the risk of automation matter?

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  • Bertoni, Marco
  • Brunello, Giorgio
  • Da Re, Filippo

Abstract

We investigate the effect of postponing minimum retirement age on middle-aged workers’ depression. Using pension reforms in several European countries and data from the SHARE survey, we find that depression increases with a longer work horizon, but only among workers in occupations with a relatively high risk of automation. We explain our results with the higher job insecurity associated with occupations that are more exposed to automation, and rule out alternatives, including pension wealth effects and the differential exposure of occupations to the business cycle.

Suggested Citation

  • Bertoni, Marco & Brunello, Giorgio & Da Re, Filippo, 2023. "Pension reforms, longer working horizons and depression. Does the risk of automation matter?," Labour Economics, Elsevier, vol. 85(C).
    • Handle: RePEc:eee:labeco:v:85:y:2023:i:c:s0927537123001227
    DOI: 10.1016/j.labeco.2023.102447
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    More about this item

    Keywords

    Pension reforms; Depression; Automation; Job insecurity; SHARE;
    All these keywords.

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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