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The Causal Effect of Retirement on Mortality - Evidence from Targeted Incentives to retire early

Author

Listed:
  • Hans Bloemen

    (VU University Amsterdam, Netspar, IZA)

  • Stefan Hochguertel

    (VU University Amsterdam, Netspar)

  • Jochem Zweerink

    (VU University Amsterdam, Netspar)

Abstract

This paper identifies and estimates the impact of early retirement on the probability to die within five years, using administrative micro panel data covering the entire population of the Netherlands. Among the older workers we focus on, a group of civil servants became eligible for retirement earlier than expected during a short time window. This exogenous policy change is used to instrument the retirement choice in a model that explains the probability to die within five years. Exploiting the panel structure of our data, we allow for unobserved heterogeneity by way of individual fixed effects in modeling the retirement choice and the probability to die. We find for men that early retirement, induced by the temporary decrease in the age of eligibility for retirement benefits, decreased the probability to die within five years by 2.5 percentage points. This is a strong effect. We find that our results are robust to several specification changes.

Suggested Citation

  • Hans Bloemen & Stefan Hochguertel & Jochem Zweerink, 2013. "The Causal Effect of Retirement on Mortality - Evidence from Targeted Incentives to retire early," Tinbergen Institute Discussion Papers 13-119/V, Tinbergen Institute.
  • Handle: RePEc:tin:wpaper:20130119
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    References listed on IDEAS

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    1. Andries De Grip & Maarten Lindeboom & Raymond Montizaan, 2012. "Shattered Dreams: The Effects of Changing the Pension System Late in the Game," Economic Journal, Royal Economic Society, vol. 122(559), pages 1-25, March.
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    4. Coe, Norma B. & Lindeboom, Maarten, 2008. "Does Retirement Kill You? Evidence from Early Retirement Windows," IZA Discussion Papers 3817, Institute of Labor Economics (IZA).
    5. Andreas Kuhn & Jean-Philippe Wuellrich & Josef Zweimüller, 2010. "Fatal attraction? Access to early retirement and mortality," IEW - Working Papers 499, Institute for Empirical Research in Economics - University of Zurich.
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    7. 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.
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    More about this item

    Keywords

    instruments; mortality; retirement;

    JEL classification:

    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • I1 - Health, Education, and Welfare - - Health
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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