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Fatal Attraction? Access to Early Retirement and Mortality

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  • Kuhn, Andreas

    () (Swiss Federal Institute for Vocational Education and Training)

  • Wuellrich, Jean-Philippe

    () (University of Zurich)

  • Zweimüller, Josef

    () (University of Zurich)

Abstract

We estimate the causal effect 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%) increase in the probability of dying before age 67. We do not find any adverse effect of early retirement on mortality 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," IZA Discussion Papers 5160, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp5160
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. How Retirement Just May Kill You
      by Ariel Goldring in Free Market Mojo on 2010-09-17 16:13:12

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    Cited by:

    1. Peter Eibich, 2014. "The Health Effects of Retirement," DIW Roundup: Politik im Fokus 48, DIW Berlin, German Institute for Economic Research.
    2. Maarten Lindeboom, 2012. "Health and Work of Older Workers," Chapters,in: The Elgar Companion to Health Economics, Second Edition, chapter 3 Edward Elgar Publishing.
      • Andrew M. Jones & Nigel Rice & Paul Contoyannis, 2006. "The Dynamics of Health," Chapters,in: The Elgar Companion to Health Economics, chapter 2 Edward Elgar Publishing.
    3. 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.
    4. 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.
    5. Eibich, P., 2014. "Understanding the effect of retirement on health using Regression Discontinuity Design," Health, Econometrics and Data Group (HEDG) Working Papers 14/10, HEDG, c/o Department of Economics, University of York.
    6. 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.
    7. 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.
    8. Eibich, Peter, 2015. "Understanding the Effect of Retirement on Health: Mechanisms and Heterogeneity," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 1-12.
    9. Peter Eibich, 2014. "Die gesundheitlichen Folgen des Renteneintritts," DIW Roundup: Politik im Fokus 48, DIW Berlin, German Institute for Economic Research.
    10. 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.
    11. Hallberg, Daniel & Johansson, Per & Josephson, Malin, 2014. "Early Retirement and Post Retirement Health," IZA Discussion Papers 8260, Institute for the Study of Labor (IZA).
    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. Ziebarth, Nicolas R., 2017. "Social Insurance and Health," IZA Discussion Papers 10918, Institute for the Study of Labor (IZA).
    14. 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.
    15. Maarten Lindeboom, 2012. "Health and Work of Older Workers," Chapters,in: The Elgar Companion to Health Economics, Second Edition, chapter 3 Edward Elgar Publishing.
    16. 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.

    More about this item

    Keywords

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

    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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