Does Retirement Kill You? Evidence from Early Retirement Windows
CentER Discussion Paper Series No. 2008-93
31 Pages Posted: 5 Nov 2008
Date Written: October 23, 2008
The effect that health has on the retirement decision has long been studied. We examine the reverse relationship, whether retirement has a direct impact on later-life health. To identify the causal relationship, we use early retirement window offers to instrument for retirement. We find no negative effects of early retirement on men's health, and if anything, a temporary increase in self-reported health and improvements in health of highly educated workers. While this is consistent with previous literature using Social Security ages as instruments, we also find that anticipation of retirement might be important, and bias the previous estimates downwards.
Keywords: retirement, depression, self-reported health, heart attack, cancer, diabetes, instrumental variables
JEL Classification: J26, I10
Suggested Citation: Suggested Citation