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Healthier when retiring earlier? Evidence from France

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  • Pierre-Jean Messe
  • François-Charles Wolff

Abstract

This paper contributes to the literature on the health-retirement relationship by looking at the effect of retiring before legal age on health in later life in France. To account for the endogeneity of the early retirement decision, our identification strategy relies on eligibility rules to a long-career early retirement scheme introduced in France in 2004 that substantially increased the proportion of older workers leaving their last job before the legal age of 60 years. We find a positive correlation between early retirement and health problems among male retirees. However, we fail to find any significant causal effect of early retirement on poor health once we account for the endogeneity of the decision to retire before the legal age. Controlling for working conditions does not influence the effect of retirement and occupying a demanding job is harmful to health after retirement regardless of the retirement date. Similar results are found for female retirees.

Suggested Citation

  • Pierre-Jean Messe & François-Charles Wolff, 2019. "Healthier when retiring earlier? Evidence from France," Applied Economics, Taylor & Francis Journals, vol. 51(47), pages 5122-5143, October.
    • Handle: RePEc:taf:applec:v:51:y:2019:i:47:p:5122-5143
    DOI: 10.1080/00036846.2019.1610710
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    1. repec:hal:wpaper:halshs-02019046 is not listed on IDEAS
    2. Mattia Filomena & Matteo Picchio, 2023. "Retirement and health outcomes in a meta‐analytical framework," Journal of Economic Surveys, Wiley Blackwell, vol. 37(4), pages 1120-1155, September.
    3. 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.
    4. Terhi Ravaska, 2023. "Do reduced working hours for older workers have health consequences and prolong work careers?," Working Papers 6, Finnish Centre of Excellence in Tax Systems Research.
    5. Clémentine Garrouste & Elsa Perdrix, 2022. "Is there a consensus on the health consequences of retirement? A literature review," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 841-879, September.
    6. repec:ulb:ulbeco:2013/363611 is not listed on IDEAS
    7. Ravaska, Terhi, 2023. "Do reduced working hours for older workers have health consequences and prolong work careers?," Working Papers 153, VATT Institute for Economic Research.
    8. Steve Briand, 2020. "Beyond the direct impact of retirement: coordination by couples in preventive and risky behaviors," Working Papers hal-02467440, HAL.
    9. Claire Duchene & Benoît Bayenet & Ilan Tojerow, 2023. "Les effets de la pension sur la santé," Dulbea Policy Brief 23.03, ULB -- Universite Libre de Bruxelles.
    10. 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).
    11. Yingying Zhang & Steve Bradley & Robert Crouchley, 2023. "Gender Differences in the Effect of Retirement Duration on Cognitive Functioning," Working Papers 379420912, Lancaster University Management School, Economics Department.

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