Are Retirees More Satisfied? Anticipation and Adaptation Effects of Retirement on Subjective Well-Being: A Panel Analysis for Germany

38 Pages Posted: 24 Sep 2018

See all articles by Joachim Merz

Joachim Merz

Research Institute on Professions; Research Institute on Professions; Leuphana University of Lueneburg; Institute for the Study of Labor (IZA)

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Abstract

Quality of life and satisfaction with life are of particular importance for individuals as well as for society concerning the "demographic change" with now longer retirement periods. This study will contribute to the life satisfaction discussion and quantifies life satisfaction and pattern of explanation before and after such a prominent life cycle event, the entrance into retirement. In particular, with the individual longitudinal data and 33 waves of the Socio-Economic Panel (SOEP) and the appropriate microeconometric causal fixed effects robust panel methods we ask and quantify if actual life satisfaction indeed is decreasing before retirement, is increasing at the entrance into retirement, and is decreasing then after certain periods back to a foregoing level. Thus, we ask if such an anticipation and adaptation pattern – as known from other prominent events – is also to discover for life satisfaction before and after retirement in Germany.

Keywords: retirement, life-satisfaction, happiness, retirement, anticipation and adaptation effects, fixed-effect regression, Socio-Economic Panel (SOEP), Germany

JEL Classification: I31, J26, J14, J17, A13, C23

Suggested Citation

Merz, Joachim and Merz, Joachim, Are Retirees More Satisfied? Anticipation and Adaptation Effects of Retirement on Subjective Well-Being: A Panel Analysis for Germany. IZA Discussion Paper No. 11832, Available at SSRN: https://ssrn.com/abstract=3253490 or http://dx.doi.org/10.2139/ssrn.3253490

Joachim Merz (Contact Author)

Research Institute on Professions ( email )

Lüneburg
Germany

Research Institute on Professions ( email )

Lüneburg
Germany

Leuphana University of Lueneburg

Scharnhorststrasse 1
Lüneburg, 21314
Germany

Institute for the Study of Labor (IZA)

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

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