Sick of Retirement?
83 Pages Posted: 6 Jan 2018 Last revised: 25 Dec 2018
Date Written: November 6, 2018
This paper examines the causal effect of retirement on health and healthcare utilization using two identification strategies on Danish full population data. First, I use a reform of the statutory retirement age in an IV design. Second, I use a large discontinuity in retirement take-up at the earliest age of retirement (60) in a regression discontinuity design. The results show that early retirement leads to decreases in GP visits and hospitalizations of 8-10% in the short run. The reduction in GP visits is driven by a drop in female GP utilization, while both genders contribute equally to the decline in hospitalizations. Early retirement has no effect on health measured by comorbidities or mortality. Statutory retirement has no effect on health or healthcare utilization. The results suggest that gender, age at retirement and complier composition are important sources of heterogeneity.
Keywords: Retirement, Health, Healthcare Utilization, Instrumental Variables (IV), Regression Discontinuity Design (RDD)
JEL Classification: I10, I12, I18, J26
Suggested Citation: Suggested Citation