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The impact of health on retirement behaviour: empirical evidence from West Germany

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  • Sikandar Siddiqui

Abstract

In this paper, the relative importance of an individual's health status on retirement behaviour is analysed within the framework of a structural, discrete‐time hazard rate model which is estimated using a balanced panel of elderly West German men. The results obtained reveal that the presence of chronic complaints or disability have a significant positive impact on the probability of early retirement. Moreover, the relative intensity of the individual preference for leisure appears to be, ceteris paribus, below average among public sector employees. Education, too, is shown to exert considerable influence on retirement behaviour, but the relationship between an individual's educational status and the probability of early retirement appears to be rather complex. A policy‐related simulation experiment based on the estimates is carried out in order to assess the effects of changes in the incentive structure of the existing pension scheme. © 1997 John Wiley & Sons, Ltd.

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  • Sikandar Siddiqui, 1997. "The impact of health on retirement behaviour: empirical evidence from West Germany," Health Economics, John Wiley & Sons, Ltd., vol. 6(4), pages 425-438, July.
    • Handle: RePEc:wly:hlthec:v:6:y:1997:i:4:p:425-438
    DOI: 10.1002/(SICI)1099-1050(199707)6:4<425::AID-HEC284>3.0.CO;2-T
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    2. Apouey, Bénédicte H. & Guven, Cahit & Senik, Claudia, 2019. "Retirement and Unexpected Health Shocks," Economics & Human Biology, Elsevier, vol. 33(C), pages 116-123.
    3. Huynh, Kim P. & Jung, Juergen, 2015. "Subjective health expectations," Journal of Policy Modeling, Elsevier, vol. 37(4), pages 693-711.
    4. Daniel Hallberg & Matias Eklöf, 2010. "Do buy‐outs of older workers matter?," International Journal of Manpower, Emerald Group Publishing Limited, vol. 31(3), pages 337-359, June.
    5. Jennifer Roberts & Nigel Rice & Andrew M Jones, 2010. "Early Retirement Among Men in Britain and Germany: How Important is Health?," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 35(4), pages 644-667, October.
    6. Suhrcke, Marc & Urban, Dieter M. & Moesgaard Iburg, Kim & Schwappach, David & Boluarte, Till & McKee, Martin, 2007. "The economic benefits of health and prevention in a high-income country: the example of Germany," Discussion Papers, Research Group Public Health SP I 2007-302, WZB Berlin Social Science Center.
    7. Subhasree Basu Roy, 2018. "Effect of Health on Retirement of Older Americans: a Competing Risks Study," Journal of Labor Research, Springer, vol. 39(1), pages 56-98, March.
    8. Dimitri Mortelmans & Jorre Vannieuwenhuyze, 2013. "The age-dependent influence of self-reported health and job characteristics on retirement," International Journal of Public Health, Springer;Swiss School of Public Health (SSPH+), vol. 58(1), pages 13-22, February.
    9. Hostenkamp, Gisela & Stolpe, Michael, 2008. "The social costs of health-related early retirement in Germany: Evidence from the German Socio-economic panel," Kiel Working Papers 1415, Kiel Institute for the World Economy (IfW Kiel).
    10. Hostenkamp, Gisela & Stolpe, Michael, 2006. "The health gradient and early retirement: Evidence from the German Socio-economic Panel," Kiel Working Papers 1305, Kiel Institute for the World Economy (IfW Kiel).
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