Why life gets better after age 50, for some: mental well-being and the social norm of work*

70 Pages Posted: 4 Nov 2022

See all articles by Titus J. Galama

Titus J. Galama

USC Center for Economic and Social Research

Coen van de Kraats

Erasmus University Rotterdam (EUR) - Erasmus Food Management Institute

Maarten Lindeboom

VU University Amsterdam

Date Written: October 29, 2022

Abstract

We provide evidence that the social norm (expectation) of work has a detrimental causal effect on the mental well-being of individuals not able to abide by it. Using SHARE data on men aged 50+ from 10 European countries, we identify the social norm of work effect in a difference-in-differences (DiD) model that compares mental well-being scores of unemployed / disabled individuals (the treatment group) with those of employed / retired individuals (the control group) at varying levels of the fraction of retirees of comparable age. The initial mental well-being gap at age 50 is large, with unemployed / disabled men experiencing lower levels of mental well-being. Beyond age 50, the mental well-being of unemployed and disabled men improves as peers of comparable age retire, and full convergence occurs generally at an age that is slightly above the normal retirement age, when everyone has retired. We estimate the social norm of work effect to be comparable to the benefit t of tertiary education, the detriment of being widowed, and the benefit t of having a household income of 2,000,000 Euros. We explore income-security and leisure-coordination channels as alternative interpretations of the effect to show that these cannot explain our fi ndings.

Keywords: mental well-being, social norm of work, retirement institutions

JEL Classification: I10, I31, J60, D63

Suggested Citation

Galama, Titus J. and van de Kraats, Coen and Lindeboom, Maarten, Why life gets better after age 50, for some: mental well-being and the social norm of work* (October 29, 2022). CESR-Schaeffer Working Paper No. 2022_005, Available at SSRN: https://ssrn.com/abstract=4267420 or http://dx.doi.org/10.2139/ssrn.4267420

Titus J. Galama (Contact Author)

USC Center for Economic and Social Research ( email )

Playa Vista, CA
United States
+310 430 6358 (Phone)

Coen Van de Kraats

Erasmus University Rotterdam (EUR) - Erasmus Food Management Institute ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Maarten Lindeboom

VU University Amsterdam

Netherlands

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