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Short and long run estimates of the local effects of retirement on health

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  • Fe, Eduardo
  • Hollingsworth, Bruce

Abstract

We explore the existence of short and long term effects of retirement on health. Short term effects are estimated with a regression discontinuity design which is robust to weak instruments and where the underlying assumptions of continuity of potential outcomes are uncontroversial. To identify the long term effects we propose a parametric model which, under strong assumptions, can separate normal deterioration of health from the causal effects of retirement. We apply our framework to the British Household Panel Survey, and find that retirement has little effect on health. However, our estimates suggest that retirement opens the gate to a sedentary life with an impoverished social component and this is a channel through which retirement could indirectly affect health in the long run.

Suggested Citation

  • Fe, Eduardo & Hollingsworth, Bruce, 2015. "Short and long run estimates of the local effects of retirement on health," MPRA Paper 65462, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:65462
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    References listed on IDEAS

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    More about this item

    Keywords

    Regression discontinuity; retirement; instrumental variables; health; wild bootstrap.;

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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