The Impact of Early Retirement on Health
36 Pages Posted: 5 Sep 2010
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: Suggested Citation