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Delayed Retirement: Effects on Health and Healthcare Utilization

Author

Listed:
  • Anne Katrine Borgbjerg
  • Hans Sigaard
  • Michael Svarer
  • Rune Vejlin

Abstract

We estimate the impact of an increase in the early retirement age (ERA) on labor supply, health, and healthcare use using a regression discontinuity design. Raising the ERA increased employment and use of public transfers. Effects on GP visits and painkiller use are precisely estimated, small, and insignificant, while antidepressant and cardiovascular drug use increased slightly, but only borderline significantly. Those induced to work had lower pre-reform income and wealth, whereas those not working despite exposure had poorer pre-reform health. We argue that possibilities for exiting employment serve as a mitigating mechanism by sorting vulnerable individuals out of employment.

Suggested Citation

  • Anne Katrine Borgbjerg & Hans Sigaard & Michael Svarer & Rune Vejlin, 2026. "Delayed Retirement: Effects on Health and Healthcare Utilization," CESifo Working Paper Series 12628, CESifo.
    • Handle: RePEc:ces:ceswps:_12628
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    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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