Retirement and Healthcare Utilization: Evidence from Pension Eligibility Ages in South Korea
69 Pages Posted: 9 Sep 2022 Last revised: 10 Apr 2023
Date Written: August 25, 2022
This paper investigates how crossing normal pension eligibility ages affects retirement and healthcare utilization by using the exogenous rule for the public pension benefit and a dataset for the elderly population from South Korea – one of the developed Asian countries. To overcome selection bias, I rely on a regression discontinuity design (RDD) to compare the outcomes of those barely above and below eligibility age thresholds. By using aggregate measures of healthcare utilization, I find that retirement increases inpatient care utilization, while it has a negative but statistically insignificant effect on outpatient care utilization. These results are qualitatively consistent with previous studies in the developing country finding that retirement has a positive impact on inpatient care utilization.
Keywords: Pension, Retirement, Healthcare Utilization, Regression Discontinuity Design
JEL Classification: H55, I11, I12, J26
Suggested Citation: Suggested Citation