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Health and Retirement among Older Workers

Author

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  • Eugenio Zucchelli
  • Anthony Harris
  • Nigel Rice
  • Andrew M. Jones

Abstract

This paper investigates the causal relationship between ill-health and retirement among older working individuals. We represent the transition to retirement as a discrete-time hazard model using a stock-sample from the first five waves (2001- 2005) of the Household, Income and Labour Dynamics in Australia (HILDA) Survey. Our results show that health plays an important role in individual retirement decisions and that negative shocks to health greatly increase the hazard of retirement, especially for men. This is true for both a measure of health limitations and a measure of latent health obtained using pooled ordered probit models, as well as for three alternative health shock measures. We also consider the effects of partners’ health and labour market status on an individual’s retirement decision. Our estimates suggest that partners’ characteristics do not significantly influence individual retirement choices.

Suggested Citation

  • Eugenio Zucchelli & Anthony Harris & Nigel Rice & Andrew M. Jones, 2007. "Health and Retirement among Older Workers," Health, Econometrics and Data Group (HEDG) Working Papers 07/19, HEDG, c/o Department of Economics, University of York.
  • Handle: RePEc:yor:hectdg:07/19
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Danilo Cavapozzi, 2008. "Health and Labor Supply Dynamics of Older Married Workers," "Marco Fanno" Working Papers 0073, Dipartimento di Scienze Economiche "Marco Fanno".
    2. Habila, Murna, 2015. "Influence of Financial Education on Retirement Security: Evidence from the state of Illinois," MPRA Paper 73988, University Library of Munich, Germany, revised 05 Jun 2016.
    3. Johnston, David W. & Propper, Carol & Shields, Michael A., 2009. "Comparing subjective and objective measures of health: Evidence from hypertension for the income/health gradient," Journal of Health Economics, Elsevier, pages 540-552.
    4. García-Gómez, Pilar & Jones, Andrew M. & Rice, Nigel, 2010. "Health effects on labour market exits and entries," Labour Economics, Elsevier, pages 62-76.
    5. Manoj K. Pandey, 2013. "Elderly's Health Shocks and Household's Ex-ante Poverty in India," ASARC Working Papers 2013-01, The Australian National University, Australia South Asia Research Centre.

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    Keywords

    health; health shocks; discrete-time hazard model; retirement.;

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