Early Retirement and Public Disability Insurance Applications: Exploring the Impact of Depression

37 Pages Posted: 25 May 2006 Last revised: 26 Dec 2022

See all articles by Rena M. Conti

Rena M. Conti

Harvard Medical School - Department of Health Care

Ernst R. Berndt

Massachusetts Institute of Technology (MIT) - Sloan School of Management; National Bureau of Economic Research (NBER)

Richard G. Frank

Harvard Medical School; National Bureau of Economic Research (NBER)

Date Written: May 2006

Abstract

This paper investigates the impact of depression on labor force participation among older workers. Empirically, we use two analytic strategies and rely on a sample drawn from the Health and Retirement Survey. Depression directly and indirectly increases individuals' probability of retiring early and applying for DI benefits, after accounting for other predictors of labor force exit. Accounting for the independent effects of depression, disability associated with physical illness may be smaller than the official statistics suggest. There may be great economic gains in increasing depression treatment awareness and access to treatment for individuals, employers and society.

Suggested Citation

Conti, Rena M. and Berndt, Ernst R. and Frank, Richard G., Early Retirement and Public Disability Insurance Applications: Exploring the Impact of Depression (May 2006). NBER Working Paper No. w12237, Available at SSRN: https://ssrn.com/abstract=902589

Rena M. Conti

Harvard Medical School - Department of Health Care ( email )

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Ernst R. Berndt (Contact Author)

Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )

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National Bureau of Economic Research (NBER)

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Richard G. Frank

Harvard Medical School ( email )

Department of Health Care Policy
Boston, MA 02115
United States
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617-432-1219 (Fax)

National Bureau of Economic Research (NBER)

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United States

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