Understanding the Effect of Retirement on Health Using Regression Discontinuity Design

45 Pages Posted: 9 Jul 2014

See all articles by Peter Eibich

Peter Eibich

German Institute for Economic Research (DIW Berlin)

Date Written: June 2014

Abstract

This paper estimates the causal effect of retirement on health, health behavior, and healthcare utilization. Using Regression Discontinuity Design to exploit financial incentives in the German pension system for identification, I investigate a wide range of health behaviors (e.g. alcohol and tobacco consumption, physical activity, diet and sleep) as potential mechanisms. The results show a long-run improvement in health upon retirement. Relief from work-related stress and strain, increased sleep duration and more frequent physical exercise seem to be key mechanisms through which retirement affects health. Moreover, the improvement in health caused by retirement leads to a reduction in healthcare utilization.

Keywords: retirement, health, regression discontinuity design, health behavior, healthcare

JEL Classification: I12, J14, J26

Suggested Citation

Eibich, Peter, Understanding the Effect of Retirement on Health Using Regression Discontinuity Design (June 2014). SOEPpaper No. 669, Available at SSRN: https://ssrn.com/abstract=2463240 or http://dx.doi.org/10.2139/ssrn.2463240

Peter Eibich (Contact Author)

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstra├če 58
Berlin, 10117
Germany

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