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Understanding the Effect of Retirement on Health Using Regression Discontinuity Design

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  • Peter Eibich

Abstract

This paper estimates the causal effect of retirement on health, health behavior, and healthcare utilization. Using Regression Discontinuity Design to exploit financial incentives in the German pension system for identification, I investigate a wide range of health behaviors (e.g. alcohol and tobacco consumption, physical activity, diet and sleep) as potential mechanisms. The results show a long-run improvement in health upon retirement. Relief from work-related stress and strain, increased sleep duration and more frequent physical exercise seem to be key mechanisms through which retirement affects health. Moreover, the improvement in health caused by retirement leads to a reduction in healthcare utilization.

Suggested Citation

  • 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).
  • Handle: RePEc:diw:diwsop:diw_sp669
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Mathilde Godard, 2017. "Gaining weight through retirement? Results from the SHARE survey," Working Papers halshs-01525000, HAL.
    2. Eve Caroli & Claudio Lucifora & Daria Vigani, 2016. "Is there a Retirement-Health Care utilization puzzle? Evidence from SHARE data in Europe," DISCE - Working Papers del Dipartimento di Economia e Finanza def049, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    3. 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.
    4. Peter Eibich, 2014. "The Health Effects of Retirement," DIW Roundup: Politik im Fokus 48, DIW Berlin, German Institute for Economic Research.
    5. Peter Eibich, 2014. "Die gesundheitlichen Folgen des Renteneintritts," DIW Roundup: Politik im Fokus 48, DIW Berlin, German Institute for Economic Research.

    More about this item

    Keywords

    retirement; health; regression discontinuity design; health behavior; healthcare;

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • 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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