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Healthcare Utilization at Retirement: The Role of the Opportunity Cost of Time

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  • Lucifora, Claudio

    (Università Cattolica del Sacro Cuore)

  • Vigani, Daria

    (Università Cattolica del Sacro Cuore)

Abstract

We investigate the causal impact of retirement on healthcare utilization using SHARE data for 10 European countries. We show that the number of doctor's visits and the probability of visiting a doctor more than four times a year (our measures of healthcare utilization) increase after retirement. The increase in healthcare utilization is found to depend mainly on the years spent in retirement, suggesting that adjustment may take time. We find evidence of heterogeneous effects by gender and across different patterns of time use prior to retirement (i.e., working long hours, and combined work and out-of-work activities). Overall, the empirical findings suggest that the increase in healthcare utilization is consistent with the decrease in the opportunity cost of time faced by individuals when they retire.

Suggested Citation

  • Lucifora, Claudio & Vigani, Daria, 2018. "Healthcare Utilization at Retirement: The Role of the Opportunity Cost of Time," IZA Discussion Papers 11727, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp11727
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    Cited by:

    1. Elsa Perdrix, 2020. "Does later retirement change your healthcare consumption ? Evidence from France," Institut des Politiques Publiques halshs-02904339, HAL.
    2. Elsa Perdrix, 2020. "Does later retirement change your healthcare consumption ? Evidence from France," PSE Working Papers halshs-02904339, HAL.
    3. Kuusi, T. & Martikainen, P. & Valkonen, T., 2020. "The influence of old-age retirement on health: Causal evidence from the Finnish register data," The Journal of the Economics of Ageing, Elsevier, vol. 17(C).
    4. Rose, Liam, 2020. "Retirement and health: Evidence from England," Journal of Health Economics, Elsevier, vol. 73(C).
    5. Birgit Leimer & Reyn van Ewijk, 2017. "No “Honeymoon Phase” Whose health benefits from retirement and when," Working Papers 2110, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz, revised 06 Jan 2021.
    6. Elsa Perdrix, 2020. "Does later retirement change your healthcare consumption ? Evidence from France," Working Papers halshs-02904339, HAL.

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    More about this item

    Keywords

    retirement; health; healthcare utilization;
    All these keywords.

    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • I10 - Health, Education, and Welfare - - Health - - - General
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation

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