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The effects of increasing the normal retirement age on health care utilization and mortality

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  • Johannes Hagen

    (Uppsala University
    Jönköping University)

Abstract

This essay estimates the health effects of increasing the normal retirement age using Swedish administrative data on drug prescriptions, hospitalizations, and mortality. To this end, I use a reform that raised the age at which broad categories of Swedish local government workers were entitled to retire with full pension benefits from 63 to 65. Estimating the effect of the reform on individuals’ health within the age range 65–69, the results show no evidence that the reform impacted mortality or health care utilization. Increasing the normal retirement age may thus have positive government income effects without seriously affecting short to medium run government health care expenditures.

Suggested Citation

  • Johannes Hagen, 2018. "The effects of increasing the normal retirement age on health care utilization and mortality," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(1), pages 193-234, January.
    • Handle: RePEc:spr:jopoec:v:31:y:2018:i:1:d:10.1007_s00148-017-0664-x
    DOI: 10.1007/s00148-017-0664-x
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    2. Elsa Perdrix, 2021. "Does later retirement change your healthcare consumption ? Evidence from France," Institut des Politiques Publiques halshs-02904339, HAL.
    3. Elsa Perdrix, 2021. "Does later retirement change your healthcare consumption ? Evidence from France," PSE Working Papers halshs-02904339, HAL.
    4. Eibich, Peter & Goldzahl, Léontine, 2021. "Does retirement affect secondary preventive care use? Evidence from breast cancer screening," Economics & Human Biology, Elsevier, vol. 43(C).
    5. Antoine Bozio & Clémentine Garrouste & Elsa Perdrix, 2020. "Impact of later retirement on mortality: Evidence from France," PSE Working Papers halshs-02019046, HAL.
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    7. Malkova, Olga, 2020. "Did Soviet elderly employment respond to financial incentives? Evidence from pension reforms," Journal of Public Economics, Elsevier, vol. 182(C).
    8. Antoine Bozio & Clémentine Garrouste & Elsa Perdrix, 2021. "Impact of later retirement on mortality: Evidence from France," Health Economics, John Wiley & Sons, Ltd., vol. 30(5), pages 1178-1199, May.
    9. Kuusi, T. & Martikainen, P. & Valkonen, T., 2020. "The influence of old-age retirement on health: Causal evidence from the Finnish register data," The Journal of the Economics of Ageing, Elsevier, vol. 17(C).
    10. Frimmel, Wolfgang & Pruckner, Gerald J., 2020. "Retirement and healthcare utilization," Journal of Public Economics, Elsevier, vol. 184(C).
    11. Bauer, Ann Barbara & Eichenberger, Reiner, 2021. "Worsening workers' health by lowering retirement age: The malign consequences of a benign reform," The Journal of the Economics of Ageing, Elsevier, vol. 18(C).
    12. Chiara Ardito & Roberto Leombruni & David Blane & Angelo d’Errico, 2020. "To Work or Not to Work? The Effect of Higher Pension Age on Cardiovascular Health," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 59(3), pages 399-434, July.
    13. Feng, Jin & Song, Hong & Wang, Zhen, 2020. "The elderly's response to a patient cost-sharing policy in health insurance: Evidence from China," Journal of Economic Behavior & Organization, Elsevier, vol. 169(C), pages 189-207.
    14. D'Albis, Hippolyte & Fougère, Denis & Gouëdard, Pierre, 2020. "Slow Down Before You Stop: The Effect of the 2010 French Pension Reform on Older Teachers' Sick Leaves," CEPR Discussion Papers 15142, C.E.P.R. Discussion Papers.
    15. Zhang, Yi & Salm, Martin & van Soest, Arthur, 2018. "The effect of retirement on healthcare utilization: Evidence from China," Journal of Health Economics, Elsevier, vol. 62(C), pages 165-177.
    16. Qin Zhou & Karen Eggleston & Gordon G. Liu, 2021. "Healthcare utilization at retirement in China," Health Economics, John Wiley & Sons, Ltd., vol. 30(11), pages 2618-2636, November.
    17. Birgit Leimer & Reyn van Ewijk, 2017. "No “Honeymoon Phase” Whose health benefits from retirement and when," Working Papers 2110, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz, revised 06 Jan 2021.
    18. Eyjólfsdóttir, H.S. & Baumann, I. & Agahi, N. & Fritzell, J. & Lennartsson, C., 2019. "Prolongation of working life and its effect on mortality and health in older adults: Propensity score matching," Social Science & Medicine, Elsevier, vol. 226(C), pages 77-86.
    19. Elsa Perdrix, 2021. "Does later retirement change your healthcare consumption ? Evidence from France," Working Papers halshs-02904339, HAL.
    20. Antoine Bozio & Clémentine Garrouste & Elsa Perdrix, 2021. "Impact of Later Retirement on Mortality: Evidence from France," PSE Working Papers hal-03352846, HAL.
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    More about this item

    Keywords

    Health; Mortality; Inpatient care; Retirement; Pensions;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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