Retirement, Death, and the Distribution of Retirement Leisure
Using longitudinal data from the Health and Retirement Study and an ordered SUR Tobit model, we jointly analyze retirement age and death age to see who consumes retirement leisure. We find that retirement age and death age are indeed correlated. Hispanic and non-white individuals, and those who suffer from poorer self-assessed health, heart or mobility problems all successfully compensate for differences in mortality risk: they have a statistically significantly different retirement or death age, but statistically indistinguishable total retirement leisure. Attempts to fix Social Security or pension funding by increasing pension eligibility ages would disproportionately affect some of these groups.
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