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

Abstract

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: https://ssrn.com/abstract=1672025 or http://dx.doi.org/10.2139/ssrn.1672025

Maarten Lindeboom

Vrije Universiteit Amsterdam ( email )

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

Tinbergen Institute Amsterdam

Gustav Mahlerplein 117
Amsterdam, 1082 MS
Netherlands

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Henrik Lindegaard Andersen (Contact Author)

Danish Institute of Governmental Research ( email )

Købmagergade 22
Copenhagen K, 1150
Denmark
+45 33344371 (Phone)

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