Retirement effects on health in Europe
What are the health impacts of retirement? As talk of raising retirement ages in pensions and social security schemes continues around the world, it is important to know both the costs and benefits for the individual, as well as the governments' budgets. In this paper we use the Survey of Health, Ageing and Retirement in Europe (SHARE) dataset to address this question in a multi-country setting. We use country-specific early and full retirement ages as instruments for retirement behavior. These statutory retirement ages clearly induce retirement, but are not related to an individual's health. Exploiting the discontinuities in retirement behavior across countries, we find significant evidence that retirement has a health-preserving effect on overall general health. Our estimates indicate that retirement leads to a 35 percent decrease in the probability of reporting to be in fair, bad, or very bad health, and an almost one standard deviation improvement in the health index. While the self-reported health seems to be a temporary impact, the health index indicates there are long-lasting health differences.
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- Susann Rohwedder & Robert J. Willis, 2010.
Journal of Economic Perspectives,
American Economic Association, vol. 24(1), pages 119-38, Winter.
- Lindeboom, Maarten & Portrait, France & van den Berg, Gerard, 2002.
"An econometric analysis of the mental-health effects of major events in the life of older individuals,"
Working Paper Series
2002:19, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- Maarten Lindeboom & France Portrait & Gerard J. van den Berg, 2002. "An econometric analysis of the mental-health effects of major events in the life of older individuals," Health Economics, John Wiley & Sons, Ltd., vol. 11(6), pages 505-520.
- Joshua D. Angrist & Victor Lavy, 1999. "Using Maimonides' Rule To Estimate The Effect Of Class Size On Scholastic Achievement," The Quarterly Journal of Economics, MIT Press, vol. 114(2), pages 533-575, May.
- Benjamins, Maureen Reindl & Hummer, Robert A. & Eberstein, Isaac W. & Nam, Charles B., 2004. "Self-reported health and adult mortality risk: An analysis of cause-specific mortality," Social Science & Medicine, Elsevier, vol. 59(6), pages 1297-1306, September.
- Julie Zissimopoulos & Nicole Maestas & Lynn A. Karoly, 2007.
"The Effect of Retirement Incentives on Retirement Behavior: Evidence from the Self-Employed In the United States and England,"
528, RAND Corporation Publications Department.
- Julie Zissimopoulos & Nicole Maestas & Lynn Karoly, 2007. "The Effect of Retirement Incentives on Retirement Behavior: Evidence from the Self-Employed in the United States and England," Working Papers wp155, University of Michigan, Michigan Retirement Research Center.
- Patricia M. Anderson & Alan L. Gustman & Thomas L. Steinmeier, 1997.
"Trends in Male Labor Force Participation And Retirement: Some Evidence On The Role Of Pensions And Social Security In The 1970's And 1980's,"
NBER Working Papers
6208, National Bureau of Economic Research, Inc.
- Anderson, Patricia M & Gustman, Alan L & Steinmeier, Thomas L, 1999. "Trends in Male Labor Force Participation and Retirement: Some Evidence on the Role of Pensions and Social Security in the 1970s and 1980s," Journal of Labor Economics, University of Chicago Press, vol. 17(4), pages 757-83, October.
- Jonathan Gruber & David A. Wise, 1999. "Introduction to "Social Security and Retirement around the World"," NBER Chapters, in: Social Security and Retirement around the World, pages 1-35 National Bureau of Economic Research, Inc.
- Jonathan Gruber & David A. Wise, 1999. "Social Security and Retirement around the World," NBER Books, National Bureau of Economic Research, Inc, number grub99-1, July.
- 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.
- Bound, John & Schoenbaum, Michael & Stinebrickner, Todd R. & Waidmann, Timothy, 1999. "The dynamic effects of health on the labor force transitions of older workers," Labour Economics, Elsevier, vol. 6(2), pages 179-202, June.
- Hahn, Jinyong & Todd, Petra & Van der Klaauw, Wilbert, 2001. "Identification and Estimation of Treatment Effects with a Regression-Discontinuity Design," Econometrica, Econometric Society, vol. 69(1), pages 201-09, January.
- 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.
- 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.
- Lumsdaine, Robin L. & Mitchell, Olivia S., 1999. "New developments in the economic analysis of retirement," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 49, pages 3261-3307 Elsevier.
- James M. Poterba & Steven F. Venti, 2004.
"The Transition to Personal Accounts and Increasing Retirement Wealth: Macro- and Microevidence,"
in: Perspectives on the Economics of Aging, pages 17-80
National Bureau of Economic Research, Inc.
- James M. Poterba & Steven F. Venti & David A. Wise, 2001. "The Transition to Personal Accounts and Increasing Retirement Wealth: Macro and Micro Evidence," NBER Working Papers 8610, National Bureau of Economic Research, Inc.
- Samwick, Andrew A., 1998.
"New evidence on pensions, social security, and the timing of retirement,"
Journal of Public Economics,
Elsevier, vol. 70(2), pages 207-236, November.
- Andrew A. Samwick, 1998. "New Evidence on Pensions, Social Security, and the Timing of Retirement," NBER Working Papers 6534, National Bureau of Economic Research, Inc.
- John Bound & Timothy Waidmann, 2007. "Estimating the Health Effects of Retirements," Working Papers wp168, University of Michigan, Michigan Retirement Research Center.
- Norma B. Coe & Hans‐Martin von Gaudecker & Maarten Lindeboom & Jürgen Maurer, 2012. "The Effect Of Retirement On Cognitive Functioning," Health Economics, John Wiley & Sons, Ltd., vol. 21(8), pages 913-927, 08.
- Jonathan Gruber & David A. Wise, 2004.
"Social Security Programs and Retirement around the World: Micro-Estimation,"
National Bureau of Economic Research, Inc, number grub04-1, July.
- Jonathan Gruber & David A. Wise, 2002. "Social Security Programs and Retirement Around the World: Micro Estimation," NBER Working Papers 9407, National Bureau of Economic Research, Inc.
- Maarten Lindeboom & France Portrait & Gerard J. van den Berg, 2003.
"Individual Mortality and Macro Economic Conditions from Birth to Death,"
CEIS Research Paper
42, Tor Vergata University, CEIS.
- Lindeboom, Maarten & Portrait, France & van den Berg, Gerard J., 2003. "Individual Mortality and Macro-Economic Conditions from Birth to Death," IZA Discussion Papers 930, Institute for the Study of Labor (IZA).
- Lindeboom, Maarten & Portrait, France & van den Berg, Gerard J, 2004. "Individual Mortality and Macroeconomic Conditions from Birth to Death," CEPR Discussion Papers 4200, C.E.P.R. Discussion Papers.
- Stéphane Adam & Christelle Bay & Eric Bonsang & Sophie Germain & Sergio Perelman, 2006. "Occupational Activities and Cognitive Reserve: a Frontier Approach Applied to the Survey on Health, Ageing, and Retirement in Europe," CREPP Working Papers 0605, Centre de Recherche en Economie Publique et de la Population (CREPP) (Research Center on Public and Population Economics) HEC-Management School, University of Liège.
When requesting a correction, please mention this item's handle: RePEc:eee:jhecon:v:30:y:2011:i:1:p:77-86. 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: (Zhang, Lei)
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.