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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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    Keywords

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    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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