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Unhealthy retirement? Evidence of occupation heterogeneity

Author Info

  • Fabrizio Mazzonna

    (IDEP and CEPRA, Facoltà di scienze economiche, Università della Svizzera italiana, Svizzera.)

  • Franco Peracchi

    ()

    (Istituto Einaudi per l'Economia e la Finanza (EIEF) and Dipartimento di Economia e Finanza Facolta' di Economia Università degli Studi di Roma 'Tor Vergata', Roma, Italia.)

Abstract

We investigate the causal effect of retirement on health and cognitive abilities by exploiting the variation between and within European countries in old age retirement rules. We show negative and significant effect of retirement on both health and cognitive abilities. We also show evidence of significant heterogeneity across occupational groups. In particular, the negative effect of retirement disappears and turn to be even positive for those working in very physically demanding jobs.

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Paper provided by USI Università della Svizzera italiana in its series IdEP Economic Papers with number 1401.

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Length: 33 pages
Date of creation: 08 Feb 2014
Date of revision:
Handle: RePEc:lug:wpidep:1401
Contact details of provider: Web page: https://www.bul.sbu.usi.ch

Keywords: Aging; cognitive abilities; retirement; occupation; SHARE;

Find related papers by JEL classification:

  • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
  • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
  • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
  • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
  • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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  1. Coe, Norma B. & Zamarro, Gema, 2011. "Retirement effects on health in Europe," Journal of Health Economics, Elsevier, vol. 30(1), pages 77-86, January.
  2. B. d'Hombres & L. Rocco & M. Suhrcke & M. McKee, 2010. "Does social capital determine health? Evidence from eight transition countries," Health Economics, John Wiley & Sons, Ltd., vol. 19(1), pages 56-74.
  3. Fabrizio Mazzonna & Franco Peracchi, 2009. "Aging, cognitive abilities and retirement," CEIS Research Paper 152, Tor Vergata University, CEIS, revised 05 Dec 2012.
  4. Bonsang Eric & Adam Stéphane & Perelman Sergio, 2010. "Does Retirement Affect Cognitive Functioning?," ROA Research Memorandum 001, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  5. Susann Rohwedder, 2009. "Mental Retirement," Working Papers 711, RAND Corporation.
  6. Mazzonna, Fabrizio, 2014. "The long lasting effects of education on old age health: Evidence of gender differences," Social Science & Medicine, Elsevier, vol. 101(C), pages 129-138.
  7. 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.
  8. Kevin Neuman, 2008. "Quit Your Job and Get Healthier? The Effect of Retirement on Health," Journal of Labor Research, Springer, vol. 29(2), pages 177-201, June.
  9. Bingley, Paul & Martinello, Alessandro, 2013. "Mental retirement and schooling," European Economic Review, Elsevier, vol. 63(C), pages 292-298.
  10. James Banks & Fabrizio Mazzonna, 2012. "The Effect of Education on Old Age Cognitive Abilities: Evidence from a Regression Discontinuity Design," Economic Journal, Royal Economic Society, vol. 122(560), pages 418-448, 05.
  11. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-55, March-Apr.
  12. Viola Angelini & Agar Brugiavini & Guglielmo Weber, 2009. "Ageing and unused capacity in Europe: is there an early retirement trap?," Economic Policy, CEPR;CES;MSH, vol. 24, pages 463-508, 07.
  13. Jonathan Gruber & David A. Wise, 2002. "Social Security Programs and Retirement Around the World: Micro Estimation," NBER Working Papers 9407, National Bureau of Economic Research, Inc.
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Cited by:

  1. Peter Eibich, 2014. "Die gesundheitlichen Folgen des Renteneintritts," DIW Roundup: Politik im Fokus 48, DIW Berlin, German Institute for Economic Research.
  2. Martina Celidoni & Vincenzo Rebba, 2015. "Healthier lifestyles after retirement in Europe? Evidence from SHARE," "Marco Fanno" Working Papers 0201, Dipartimento di Scienze Economiche "Marco Fanno".
  3. Giuntella, Osea & Mazzonna, Fabrizio, 2015. "Do immigrants improve the health of natives?," Journal of Health Economics, Elsevier, vol. 43(C), pages 140-153.

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