IDEAS home Printed from https://ideas.repec.org/p/zbw/glodps/426.html
   My bibliography  Save this paper

The Mental Health Effects of Retirement

Author

Listed:
  • Picchio, Matteo
  • van Ours, Jan C.

Abstract

We study the retirement effects on mental health using a fuzzy regression discontinuity design based on the eligibility age to the state pension in the Netherlands. We find that the mental effects are heterogeneous by gender and marital status. Retirement of partnered men positively affects mental health of both themselves and their partners. Single men retiring experience a drop in mental health. Female retirement has hardly any effect on their own mental health or the mental health of their partners. Part of the effects seem to be driven by loneliness after retirement.

Suggested Citation

  • Picchio, Matteo & van Ours, Jan C., 2019. "The Mental Health Effects of Retirement," GLO Discussion Paper Series 426, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:426
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/206809/1/GLO-DP-0426.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Kolodziej, Ingo W.K. & García-Gómez, Pilar, 2019. "Saved by retirement: Beyond the mean effect on mental health," Social Science & Medicine, Elsevier, vol. 225(C), pages 85-97.
    2. Alan I. Barreca & Jason M. Lindo & Glen R. Waddell, 2016. "Heaping-Induced Bias In Regression-Discontinuity Designs," Economic Inquiry, Western Economic Association International, vol. 54(1), pages 268-293, January.
    3. Eve Caroli & Andrea Bassanini, 2015. "Is Work bad for Health ? The Role of Constraint Versus Choice," Annals of Economics and Statistics, GENES, issue 119-120, pages 13-37.
    4. Elizabeth Horner, 2014. "Subjective Well-Being and Retirement: Analysis and Policy Recommendations," Journal of Happiness Studies, Springer, vol. 15(1), pages 125-144, February.
    5. Bonsang, Eric & Klein, Tobias J., 2012. "Retirement and subjective well-being," Journal of Economic Behavior & Organization, Elsevier, vol. 83(3), pages 311-329.
    6. David S. Lee & Thomas Lemieux, 2010. "Regression Discontinuity Designs in Economics," Journal of Economic Literature, American Economic Association, vol. 48(2), pages 281-355, June.
    7. 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.
    8. Celidoni, Martina & Dal Bianco, Chiara & Weber, Guglielmo, 2017. "Retirement and cognitive decline. A longitudinal analysis using SHARE data," Journal of Health Economics, Elsevier, vol. 56(C), pages 113-125.
    9. Fitzpatrick, Maria D. & Moore, Timothy J., 2018. "The mortality effects of retirement: Evidence from Social Security eligibility at age 62," Journal of Public Economics, Elsevier, vol. 157(C), pages 121-137.
    10. Sebastian Calonico & Matias D. Cattaneo & Rocio Titiunik, 2014. "Robust Nonparametric Confidence Intervals for Regression‐Discontinuity Designs," Econometrica, Econometric Society, vol. 82, pages 2295-2326, November.
    11. Hans Bloemen & Stefan Hochguertel & Jochem Zweerink, 2017. "The causal effect of retirement on mortality: Evidence from targeted incentives to retire early," Health Economics, John Wiley & Sons, Ltd., vol. 26(12), pages 204-218, December.
    12. Bonsang, Eric & Adam, Stéphane & Perelman, Sergio, 2012. "Does retirement affect cognitive functioning?," Journal of Health Economics, Elsevier, vol. 31(3), pages 490-501.
    13. Yoshinori Nishimura & Masato Oikawa & Hiroyuki Motegi, 2018. "What Explains The Difference In The Effect Of Retirement On Health? Evidence From Global Aging Data," Journal of Economic Surveys, Wiley Blackwell, vol. 32(3), pages 792-847, July.
    14. Bertoni, Marco & Brunello, Giorgio, 2017. "Pappa Ante Portas: The effect of the husband's retirement on the wife's mental health in Japan," Social Science & Medicine, Elsevier, vol. 175(C), pages 135-142.
    15. Müller, Tobias & Shaikh, Mujaheed, 2018. "Your retirement and my health behavior: Evidence on retirement externalities from a fuzzy regression discontinuity design," Journal of Health Economics, Elsevier, vol. 57(C), pages 45-59.
    16. Xu, Ke-Li, 2017. "Regression discontinuity with categorical outcomes," Journal of Econometrics, Elsevier, vol. 201(1), pages 1-18.
    17. Marzieh Abolhassani & Rob Alessie, 2013. "Subjective Well-Being Around Retirement," De Economist, Springer, vol. 161(3), pages 349-366, September.
    18. Andreas Kuhn & Stefan Staubli & Jean-Philippe Wuellrich & Josef Zweimüller, 2018. "Fatal Attraction? Extended Unemployment Benefits, Labor Force Exits, and Mortality," NBER Chapters, in: Trans-Atlantic Public Economics Seminar 2018, National Bureau of Economic Research, Inc.
    19. Eduardo Fé & Bruce Hollingsworth, 2016. "Short- and long-run estimates of the local effects of retirement on health," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 179(4), pages 1051-1067, October.
    20. 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.
    21. Hans Bloemen & Stefan Hochguertel & Jochem Zweerink, 2019. "The Effect Of Incentive‐Induced Retirement On Spousal Retirement Rates: Evidence From A Natural Experiment," Economic Inquiry, Western Economic Association International, vol. 57(2), pages 910-930, April.
    22. Aspen Gorry & Devon Gorry & Sita Nataraj Slavov, 2018. "Does retirement improve health and life satisfaction?," Health Economics, John Wiley & Sons, Ltd., vol. 27(12), pages 2067-2086, December.
    23. Dusanee Kesavayuth & Robert E. Rosenman & Vasileios Zikos, 2016. "Retirement, Personality, And Well-Being," Economic Inquiry, Western Economic Association International, vol. 54(2), pages 733-750, April.
    24. repec:adr:anecst:y:2015:i:119-120 is not listed on IDEAS
    25. Guido Imbens & Karthik Kalyanaraman, 2012. "Optimal Bandwidth Choice for the Regression Discontinuity Estimator," Review of Economic Studies, Oxford University Press, vol. 79(3), pages 933-959.
    26. repec:wly:hlthec:v:25:y:2016:i::p:126-140 is not listed on IDEAS
    27. Heller-Sahlgren, Gabriel, 2017. "Retirement blues," Journal of Health Economics, Elsevier, vol. 54(C), pages 66-78.
    28. Wilbert van der Klaauw, 2002. "Estimating the Effect of Financial Aid Offers on College Enrollment: A Regression-Discontinuity Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(4), pages 1249-1287, November.
    29. Timothy N. Bond & Kevin Lang, 2019. "The Sad Truth about Happiness Scales," Journal of Political Economy, University of Chicago Press, vol. 127(4), pages 1629-1640.
    30. Martina Celidoni & Vincenzo Rebba, 2017. "Healthier lifestyles after retirement in Europe? Evidence from SHARE," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 18(7), pages 805-830, September.
    31. Eibich, Peter, 2015. "Understanding the effect of retirement on health: Mechanisms and heterogeneity," Journal of Health Economics, Elsevier, vol. 43(C), pages 1-12.
    32. Atalay, Kadir & Barrett, Garry F. & Staneva, Anita, 2019. "The effect of retirement on elderly cognitive functioning," Journal of Health Economics, Elsevier, vol. 66(C), pages 37-53.
    33. Andrew Gelman & Guido Imbens, 2019. "Why High-Order Polynomials Should Not Be Used in Regression Discontinuity Designs," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 37(3), pages 447-456, July.
    34. Müller, Tobias & Shaikh, Mujaheed, 2016. "Your Retirement and My Health Behaviour: Evidence on Retirement Externalities from a Fuzzy Regression Discontinuity Design," MPRA Paper 70843, University Library of Munich, Germany.
    35. Coe, Norma B. & Zamarro, Gema, 2011. "Retirement effects on health in Europe," Journal of Health Economics, Elsevier, vol. 30(1), pages 77-86, January.
    36. Courtney C. Coile, 2015. "Economic Determinants Of Workers’ Retirement Decisions," Journal of Economic Surveys, Wiley Blackwell, vol. 29(4), pages 830-853, September.
    37. David Roodman, 2011. "Fitting fully observed recursive mixed-process models with cmp," Stata Journal, StataCorp LP, vol. 11(2), pages 159-206, June.
    38. Nielsen, Nick Fabrin, 2019. "Sick of retirement?," Journal of Health Economics, Elsevier, vol. 65(C), pages 133-152.
    39. McCrary, Justin, 2008. "Manipulation of the running variable in the regression discontinuity design: A density test," Journal of Econometrics, Elsevier, vol. 142(2), pages 698-714, February.
    40. Hessel, Philipp, 2016. "Does retirement (really) lead to worse health among European men and women across all educational levels?," Social Science & Medicine, Elsevier, vol. 151(C), pages 19-26.
    41. Lee, David S. & Card, David, 2008. "Regression discontinuity inference with specification error," Journal of Econometrics, Elsevier, vol. 142(2), pages 655-674, February.
    42. Messe, Pierre-Jean & Wolff, François-Charles, 2019. "The short-term effects of retirement on health within couples: Evidence from France," Social Science & Medicine, Elsevier, vol. 221(C), pages 27-39.
    43. Michele Belloni & Elena Meschi & Giacomo Pasini, 2016. "The Effect on Mental Health of Retiring During the Economic Crisis," Health Economics, John Wiley & Sons, Ltd., vol. 25(S2), pages 126-140, November.
    44. Hahn, Jinyong & Todd, Petra & Van der Klaauw, Wilbert, 2001. "Identification and Estimation of Treatment Effects with a Regression-Discontinuity Design," Econometrica, Econometric Society, vol. 69(1), pages 201-209, January.
    45. Hallberg, Daniel & Johansson, Per & Josephson, Malin, 2015. "Is an early retirement offer good for your health? Quasi-experimental evidence from the army," Journal of Health Economics, Elsevier, vol. 44(C), pages 274-285.
    46. Yingying Dong, 2015. "Regression Discontinuity Applications with Rounding Errors in the Running Variable," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 30(3), pages 422-446, April.
    47. Matias D. Cattaneo & Michael Jansson & Xinwei Ma, 2018. "Manipulation testing based on density discontinuity," Stata Journal, StataCorp LP, vol. 18(1), pages 234-261, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Julien Bergeot & Roméo Fontaine, 2020. "The heterogeneous effect of retirement on informal care behavior," Health Economics, John Wiley & Sons, Ltd., vol. 29(10), pages 1101-1116, October.
    2. Kettlewell, Nathan & Lam, Jack, 2020. "Retirement, Social Support and Mental Wellbeing: A Couple-level Analysis," IZA Discussion Papers 13403, Institute of Labor Economics (IZA).
    3. Steve Briand, 2020. "Beyond the direct impact of retirement: coordination by couples in preventive and risky behaviors," Working Papers hal-02467440, HAL.
    4. Jan van Ours, 2020. "What a drag it is getting old? Mental health and loneliness beyond age 50," Tinbergen Institute Discussion Papers 20-075/V, Tinbergen Institute.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Steve Briand, 2020. "Beyond the direct impact of retirement: coordination by couples in preventive and risky behaviors," Working Papers hal-02467440, HAL.
    2. Kuusi, T. & Martikainen, P. & Valkonen, T., 2020. "The influence of old-age retirement on health: Causal evidence from the Finnish register data," The Journal of the Economics of Ageing, Elsevier, vol. 17(C).
    3. Pedron, Sara & Maier, Werner & Peters, Annette & Linkohr, Birgit & Meisinger, Christine & Rathmann, Wolfgang & Eibich, Peter & Schwettmann, Lars, 2020. "The effect of retirement on biomedical and behavioral risk factors for cardiovascular and metabolic disease," Economics & Human Biology, Elsevier, vol. 38(C).
    4. Nielsen, Nick Fabrin, 2019. "Sick of retirement?," Journal of Health Economics, Elsevier, vol. 65(C), pages 133-152.
    5. Maja Weemes Grøtting & Otto Sevaldson Lillebø, 2020. "Health effects of retirement: evidence from survey and register data," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(2), pages 671-704, April.
    6. Müller, Tobias & Shaikh, Mujaheed, 2018. "Your retirement and my health behavior: Evidence on retirement externalities from a fuzzy regression discontinuity design," Journal of Health Economics, Elsevier, vol. 57(C), pages 45-59.
    7. Rose, Liam, 2020. "Retirement and health: Evidence from England," Journal of Health Economics, Elsevier, vol. 73(C).
    8. Mauricio Villamizar-Villegas & Freddy A. Pinzón-Puerto & María Alejandra Ruiz-Sánchez, 2020. "A Comprehensive History of Regression Discontinuity Designs: An Empirical Survey of the last 60 Years," Borradores de Economia 1112, Banco de la Republica de Colombia.
    9. Weemes Grøtting, Maja & Lillebø, Otto, 2017. "Health Effects of Retirement: Evidence from Survey and Register Data," Working Papers in Economics 10/18, University of Bergen, Department of Economics, revised 19 Nov 2018.
    10. Andreas Kuhn, 2018. "The complex effects of retirement on health," IZA World of Labor, Institute of Labor Economics (IZA), pages 430-430, March.
    11. Johannes Hagen, 2018. "The effects of increasing the normal retirement age on health care utilization and mortality," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(1), pages 193-234, January.
    12. Kyyrä, Tomi & Pesola, Hanna, 2020. "Long-term effects of extended unemployment benefits for older workers," Labour Economics, Elsevier, vol. 62(C).
    13. Zhao, Meng & Konishi, Yoshifumi & Noguchi, Haruko, 2017. "Retiring for better health? Evidence from health investment behaviors in Japan," Japan and the World Economy, Elsevier, vol. 42(C), pages 56-63.
    14. Andreas Kuhn & Stefan Staubli & Jean-Philippe Wuellrich & Josef Zweimüller, 2018. "Fatal Attraction? Extended Unemployment Benefits, Labor Force Exits, and Mortality," NBER Chapters, in: Trans-Atlantic Public Economics Seminar 2018, National Bureau of Economic Research, Inc.
    15. Hagen, Johannes, 2016. "What are the Health effects of postponing retirement? An instrumental variable approach," Working Paper Series 2016:11, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    16. Blaise Melly & Rafael Lalive, 2020. "Estimation, Inference, and Interpretation in the Regression Discontinuity Design," Diskussionsschriften dp2016, Universitaet Bern, Departement Volkswirtschaft.
    17. Davezies, Laurent & Le Barbanchon, Thomas, 2017. "Regression discontinuity design with continuous measurement error in the running variable," Journal of Econometrics, Elsevier, vol. 200(2), pages 260-281.
    18. Bertoni, Marco & Brunello, Giorgio & Mazzarella, Gianluca, 2018. "Does postponing minimum retirement age improve healthy behaviors before retirement? Evidence from middle-aged Italian workers," Journal of Health Economics, Elsevier, vol. 58(C), pages 215-227.
    19. Bartalotti Otávio, 2019. "Regression Discontinuity and Heteroskedasticity Robust Standard Errors: Evidence from a Fixed-Bandwidth Approximation," Journal of Econometric Methods, De Gruyter, vol. 8(1), pages 1-26, January.
    20. Fitzpatrick, Maria D. & Moore, Timothy J., 2018. "The mortality effects of retirement: Evidence from Social Security eligibility at age 62," Journal of Public Economics, Elsevier, vol. 157(C), pages 121-137.

    More about this item

    Keywords

    Retirement; health; well-being; happiness; regression discontinuity design;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:glodps:426. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - Leibniz Information Centre for Economics). General contact details of provider: http://edirc.repec.org/data/glaboea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.