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The Causal Effect of Retirement on Health Services Utilization: Evidence from Urban Vietnam

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  • Dang, Thang

Abstract

Access to medical services is significantly essential for retaining and improving health status for aging population. Whilst retired individuals tend to have more time for the use of health services, there is only inadequate evidence evaluating the causal effect of retirement on health services utilization. To fulfill this gap in the literature especially from developing countries, this paper estimates the causal effect of retirement on the probability and the frequency of doctor visits at public health facilities in urban Vietnam. Employing authorized retirement ages for both men and women in Vietnam as instruments for the probability to be retired, the paper shows that retirement significantly increases some outcomes of outpatient health services for both male and female. In particular, the baseline 2SLS estimates indicate that men who are retired are more likely to have any outpatient medical visit than those who are not retired by about 36.1%. Meanwhile, retirement rises both the likelihood and the frequency of outpatient visits for female by roughly 31% and 1.75 times respectively. However, this paper finds statistically insignificant impacts of retirement on utilization outcomes for inpatient services.

Suggested Citation

  • Dang, Thang, 2017. "The Causal Effect of Retirement on Health Services Utilization: Evidence from Urban Vietnam," MPRA Paper 79693, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:79693
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    File URL: https://mpra.ub.uni-muenchen.de/79693/1/MPRA_paper_79693.pdf
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    References listed on IDEAS

    as
    1. Bonsang, Eric & Klein, Tobias J., 2012. "Retirement and subjective well-being," Journal of Economic Behavior & Organization, Elsevier, vol. 83(3), pages 311-329.
    2. 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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    4. 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.
    5. Kämpfen, Fabrice & Maurer, Jürgen, 2016. "Time to burn (calories)? The impact of retirement on physical activity among mature Americans," Journal of Health Economics, Elsevier, vol. 45(C), pages 91-102.
    6. repec:eee:socmed:v:181:y:2017:i:c:p:122-130 is not listed on IDEAS
    7. Susann Rohwedder & Robert J. Willis, 2010. "Mental Retirement," Journal of Economic Perspectives, American Economic Association, vol. 24(1), pages 119-138, Winter.
    8. Heller-Sahlgren, Gabriel, 2017. "Retirement blues," LSE Research Online Documents on Economics 73079, London School of Economics and Political Science, LSE Library.
    9. Butterworth, Peter & Gill, Sarah C. & Rodgers, Bryan & Anstey, Kaarin J. & Villamil, Elena & Melzer, David, 2006. "Retirement and mental health: Analysis of the Australian national survey of mental health and well-being," Social Science & Medicine, Elsevier, vol. 62(5), pages 1179-1191, March.
    10. Imbens, Guido W. & Lemieux, Thomas, 2008. "Regression discontinuity designs: A guide to practice," Journal of Econometrics, Elsevier, vol. 142(2), pages 615-635, February.
    11. 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.
    12. Heller Sahlgren, Gabriel, 2016. "Retirement Blues," Working Paper Series 1114, Research Institute of Industrial Economics, revised 17 May 2017.
    13. Eve Caroli & Claudio Lucifora & Daria Vigani, 2016. "Is there a Retirement-Health Care utilization puzzle? Evidence from SHARE data in Europe," DISCE - Working Papers del Dipartimento di Economia e Finanza def049, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
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    15. Padmaja Ayyagari, 2016. "The Impact of Retirement on Smoking Behavior," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 42(2), pages 270-287, March.
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    More about this item

    Keywords

    Retirement; Health services utilization; Developing countries;

    JEL classification:

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

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