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Fatal Attraction? Access to Early Retirement and Mortality

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  • Kuhn, Andreas
  • Wuellrich, Jean-Philippe
  • Zweimüller, Josef

Abstract

We estimate the causal e ffect of early retirement on mortality for blue-collar workers. To overcome the problem of endogenous selection, we exploit an exogenous change in unemployment insurance rules in Austria that allowed workers in eligible regions to withdraw from the workforce up to 3.5 years earlier than those in non-eligible regions. For males, instrumental-variable estimates show a significant 2.4 percentage points (about 13%) increasein the probability of dying before age 67. We do not find any adverse effect early retirement onmortality for females. Death causes indicate a significantly higher incidence of cardiovascular disorders among eligible workers, suggesting that changes in health-related behavior explain increased mortality among male early retirees.

Suggested Citation

  • Kuhn, Andreas & Wuellrich, Jean-Philippe & Zweimüller, Josef, 2010. "Fatal Attraction? Access to Early Retirement and Mortality," CEPR Discussion Papers 8024, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:8024
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    Cited by:

    1. Johansson Per & Laun Lisa & Laun Tobias, 2014. "Screening Stringency in the Disability Insurance Program," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(3), pages 1-19, July.
    2. Peter Eibich, 2014. "Understanding the Effect of Retirement on Health Using Regression Discontinuity Design," SOEPpapers on Multidisciplinary Panel Data Research 669, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Hernaes, Erik & Markussen, Simen & Piggott, John & Vestad, Ola L., 2013. "Does retirement age impact mortality?," Journal of Health Economics, Elsevier, vol. 32(3), pages 586-598.
    4. Ziebarth, Nicolas R., 2017. "Social Insurance and Health," IZA Discussion Papers 10918, Institute for the Study of Labor (IZA).
    5. Hallberg, Daniel & Johansson, Per & Josephson, Malin, 2014. "Early retirement and post retirement health," Working Paper Series, Center for Labor Studies 2014:5, Uppsala University, Department of Economics.
    6. Maarten Lindeboom, 2012. "Health and Work of Older Workers," Chapters,in: The Elgar Companion to Health Economics, Second Edition, chapter 3 Edward Elgar Publishing.
    7. Kuhn, Michael & Wrzaczek, Stefan & Prskawetz, Alexia & Feichtinger, Gustav, 2015. "Optimal choice of health and retirement in a life-cycle model," Journal of Economic Theory, Elsevier, vol. 158(PA), pages 186-212.
    8. repec:iza:izawol:journl:y:2018:n:430 is not listed on IDEAS
    9. Paweł Strzelecki & Joanna Tyrowicz, 2015. "Crowding (out) the retirees? RDD application to raising effective retirement age in Poland," Working Papers 2015-10, Faculty of Economic Sciences, University of Warsaw.
    10. Peter Eibich, 2014. "The Health Effects of Retirement," DIW Roundup: Politik im Fokus 48, DIW Berlin, German Institute for Economic Research.
    11. Hagen, Johannes, 2016. "What are the Health effects of postponing retirement? An instrumental variable approach," Working Paper Series 2016:11, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    12. Tibor Hanappi, 2012. "Retirement Behaviour in Austria: Incentive Effects on Old-Age Labor Supply," NRN working papers 2012-13, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
    13. Sahlgren, Gabriel H., 2012. "Work ‘til You Drop: Short- and Longer-Term Health Effects of Retirement in Europe," Working Paper Series 928, Research Institute of Industrial Economics.
    14. Eibich, Peter, 2015. "Understanding the effect of retirement on health: Mechanisms and heterogeneity," Journal of Health Economics, Elsevier, vol. 43(C), pages 1-12.
    15. Hallberg, Daniel & Johansson, Per & Josephson, Malin, 2015. "Is an early retirement offer good for your health? Quasi-experimental evidence from the army," Journal of Health Economics, Elsevier, vol. 44(C), pages 274-285.
    16. Peter Eibich, 2014. "Die gesundheitlichen Folgen des Renteneintritts," DIW Roundup: Politik im Fokus 48, DIW Berlin, German Institute for Economic Research.
    17. repec:eee:jhecon:v:57:y:2018:i:c:p:15-30 is not listed on IDEAS

    More about this item

    Keywords

    early retirement; endogeneity; health behavior; instrumental variable; mortality; premature death;

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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