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Understanding the Effect of Retirement on Health Using Regression Discontinuity Design

  • Peter Eibich

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.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.467192.de/diw_sp0669.pdf
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Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 669.

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Length: 43 p.
Date of creation: 2014
Date of revision:
Handle: RePEc:diw:diwsop:diw_sp669
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  1. Michael Insler, 2014. "The Health Consequences of Retirement," Journal of Human Resources, University of Wisconsin Press, vol. 49(1), pages 195-233.
  2. Sukyung Chung & Marisa E. Domino & Sally C. Stearns, 2009. "The Effect of Retirement on Weight," Journals of Gerontology: Series B, Gerontological Society of America, vol. 64(5), pages 656-665.
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  6. Andreas Kuhn & Jean-Philipe Wuellrich & Josef Zweimüller, 2010. "Fatal Attraction? Access to Early Retirement and Mortality," NRN working papers 2010-08, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
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  8. Grip Andries de & Lindeboom Maarten & Montizaan Raymond, 2009. "Dreams: The Effects of Changing the Pension System Late in the Game," Research Memorandum 043, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
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  12. Lemola, Sakari & Richter, David, 2013. "The Course of Subjective Sleep Quality in Middle and Old Adulthood and Its Relation to Physical Health," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 721-729.
  13. Elena Stancanelli & Arthur Van Soest, 2012. "Joint Leisure Before and After Retirement : a double Regression Discontinuity Approach," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00768901, HAL.
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  16. Bloemen, H. & Hochguertel, S. & Zweering, J., 2013. "The Causal Effect of Retirement on Mortality: Evidence from Targeted Incentives to Retire Early," Health, Econometrics and Data Group (HEDG) Working Papers 13/22, HEDG, c/o Department of Economics, University of York.
  17. Nicolas R. Ziebarth, 2009. "Measurement of Health, the Sensitivity of the Concentration Index, and Reporting Heterogeneity," SOEPpapers on Multidisciplinary Panel Data Research 211, DIW Berlin, The German Socio-Economic Panel (SOEP).
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  19. Stancanelli, Elena G. F., 2014. "Divorcing Upon Retirement: A Regression Discontinuity Study," IZA Discussion Papers 8117, Institute for the Study of Labor (IZA).
  20. 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.
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  22. Matthias Nübling & Hanfried H. Andersen & Axel Mühlbacher & Jürgen Schupp & Gert G. Wagner, 2007. "Computation of Standard Values for Physical and Mental Health Scale Scores Using the SOEP Version of SF12v2," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 127(1), pages 171-182.
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  26. repec:hal:journl:halshs-00768901 is not listed on IDEAS
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  35. Stefanie Behncke, 2012. "Does retirement trigger ill health?," Health Economics, John Wiley & Sons, Ltd., vol. 21(3), pages 282-300, 03.
  36. Johnston, David W. & Lee, Wang-Sheng, 2009. "Retiring to the good life? The short-term effects of retirement on health," Economics Letters, Elsevier, vol. 103(1), pages 8-11, April.
  37. Nicolas Moreau & Elena Stancanelli, 2013. "Household Consumption at Retirement: A Regression Discontinuity Study on French," Documents de travail du Centre d'Economie de la Sorbonne 13072, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  38. 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.
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