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Too Sick for Working, or Sick of Working? Impact of Acute Health Shocks on Early Labour Market Exits

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  • Luis Vieira

Abstract

This study investigates the impact of acute health shocks on early labour market exits among individuals aged 50 and over in Europe. Utilising data from Waves 1-8 of the Survey of Health, Ageing, and Retirement in Europe (SHARE), encompassing over 140,000 individuals, I employ survival analysis techniques, including Kaplan-Meier estimators and Cox proportional hazards models. The analysis explores how sudden, severe health events, alongside self-perceived health, chronic conditions, and socio-demographic factors, influence the probability of exiting the workforce before official retirement age. Results indicate that acute health shocks significantly increase the hazard of early labour market exit, with more pronounced effects observed for males. Poorer self-perceived health and lower educational attainment are also strong predictors of early exit. Gender differences are notable: while poorer health consistently raises exit risk for both genders, income acts as a protective factor for females, and living with a partner reduces exit risk for males but increases it for females. These findings highlight the critical role of health in labour market participation and suggest the need for targeted policies to support older workers, particularly those experiencing adverse health events.

Suggested Citation

  • Luis Vieira, 2025. "Too Sick for Working, or Sick of Working? Impact of Acute Health Shocks on Early Labour Market Exits," Papers 2505.06545, arXiv.org.
    • Handle: RePEc:arx:papers:2505.06545
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    References listed on IDEAS

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    1. Eugenio Zucchelli & Andrew M. Jones & Nigel Rice & Anthony Harris, 2010. "The Effects of Health Shocks on labour Market Exits: Evidence from the HILDA Survey," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 13(2), pages 191-218.
    2. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    3. Camelia M. Kuhnen & Brian T. Melzer, 2018. "Noncognitive Abilities and Financial Delinquency: The Role of Self‐Efficacy in Avoiding Financial Distress," Journal of Finance, American Finance Association, vol. 73(6), pages 2837-2869, December.
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