The Impact of Early Retirement on Health

36 Pages Posted: 5 Sep 2010

See all articles by Maarten Lindeboom

Maarten Lindeboom

Vrije Universiteit Amsterdam; Tinbergen Institute Amsterdam; IZA Institute of Labor Economics

Henrik Lindegaard Andersen

Danish Institute of Governmental Research

Date Written: July 13, 2010


This paper investigates the impact of early retirement on the health after retirement. Although the correlation between retirement and mental health is negative, this is not necessarily a causal impact because retirement may be endogenous to health. We address the endogeneity using two sources of exogenous variation in retirement; the first arises because of a reform of the early retirement scheme, and the second is due to an eligibility discontinuity in age. Our results are based on a large Danish administrative dataset for everyone born 1936-42 (N = 376, 909). We measure health outcomes by purchase of different types of prescription medicine and mortality. Our results support prior findings in the literature: early retirement has no effect on the medicine purchase risk in either short or long run.

Keywords: Early Retirement, Objective Health, Administrative Register Data, Reform, Regression Discontinuity Design, Instrumental Variables

JEL Classification: I10, J26

Suggested Citation

Lindeboom, Maarten and Andersen, Henrik Lindegaard, The Impact of Early Retirement on Health (July 13, 2010). Available at SSRN: or

Maarten Lindeboom

Vrije Universiteit Amsterdam ( email )

De Boelelaan 1105
1081 HV Amsterdam
+31 20 444 6033 (Phone)
+31 20 444 6020 (Fax)

Tinbergen Institute Amsterdam

Gustav Mahlerplein 117
Amsterdam, 1082 MS

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072

Henrik Lindegaard Andersen (Contact Author)

Danish Institute of Governmental Research ( email )

KĂžbmagergade 22
Copenhagen K, 1150
+45 33344371 (Phone)

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