The Effect on Mental Health of Retiring During the Economic Crisis

28 Pages Posted: 30 May 2015

See all articles by Liudmila Antonova

Liudmila Antonova

Ca Foscari University of Venice

Michele Belloni

University of Turin; Center for Research on Pensions and Welfare Policies (CeRP); Netspar

Elena Meschi

Ca Foscari University of Venice

Giacomo Pasini

Ca' Foscari University of Venice; Netspar

Date Written: May 20, 2015

Abstract

This paper investigates the causal impact of retirement on late life depression, a growing concern for public health as major depressive disorders are the second leading cause of disability. We shed light on the role of economic conditions in shaping the effect of retirement on mental health by exploiting the time and regional variation in the severity of the economic crisis across ten European countries over the 2004-2013 period. We use data from four waves of the Survey of Health, Ageing and Retirement in Europe (SHARE) and address the potential endogeneity of retirement decision to mental health by applying a fixed-effect instrumental variable approach. Results indicate that retirement improves mental health of men, but not of women. This effect is stronger for those men working in regions that are severely hit by the economic crisis and in blue-collar jobs. These findings may be explained by the worsening of working conditions and the rise in job insecurity stemming from the economic downturn: In these circumstances, the exit from the labor force is perceived as a relief.

Keywords: depression, stress, retirement, crisis

JEL Classification: I10, J26, J28

Suggested Citation

Antonova, Liudmila and Belloni, Michele and Meschi, Elena and Pasini, Giacomo, The Effect on Mental Health of Retiring During the Economic Crisis (May 20, 2015). University Ca' Foscari of Venice, Dept. of Economics Research Paper Series No. 10/WP/2015, Available at SSRN: https://ssrn.com/abstract=2611865 or http://dx.doi.org/10.2139/ssrn.2611865

Liudmila Antonova

Ca Foscari University of Venice ( email )

Dorsoduro 3246
Venice, Veneto 30123
Italy

Michele Belloni

University of Turin ( email )

Lungo Dora Siena 100
Torino, 10153
Italy

Center for Research on Pensions and Welfare Policies (CeRP) ( email )

Via Real Collegio, 30
Moncalieri, Turin 10024
Italy

Netspar

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Elena Meschi

Ca Foscari University of Venice

Dorsoduro 3246
Venice, Veneto 30123
Italy

Giacomo Pasini (Contact Author)

Ca' Foscari University of Venice ( email )

Cannaregio 873
Venice, 30121
Italy
+39 041 234 9171 (Phone)
+39 041 2349176 (Fax)

HOME PAGE: http://https://sites.google.com/unive.it/pasini

Netspar ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

HOME PAGE: http://www.netspar.nl/people/researchfellows/pasini/

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