A Theory of Retirement

41 Pages Posted: 29 Nov 2007

See all articles by David E. Bloom

David E. Bloom

Harvard University - T.H. Chan School of Public Health; National Bureau of Economic Research (NBER)

David Canning

Harvard University - T.H. Chan School of Public Health

Michael Moore

University of Warwick - Warwick Business School

Date Written: November 2007

Abstract

We construct a life-cycle model in which retirement occurs at the end of life as a result of declining health. We show that improvements in life expectancy, coupled with a delay in the onset of disability, increases both the optimal consumption level and the proportion of life spent in leisure. The retirement age increases proportionally less than the increase in life expectancy.

Suggested Citation

Bloom, David E. and Canning, David and Moore, Michael John, A Theory of Retirement (November 2007). NBER Working Paper No. w13630, Available at SSRN: https://ssrn.com/abstract=1033756

David E. Bloom (Contact Author)

Harvard University - T.H. Chan School of Public Health ( email )

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617-432-0654 (Phone)

National Bureau of Economic Research (NBER)

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David Canning

Harvard University - T.H. Chan School of Public Health ( email )

677 Huntington Avenue
Boston, MA MA 02115
United States

Michael John Moore

University of Warwick - Warwick Business School ( email )

Coventry CV4 7AL
United Kingdom

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