2018
DOI: 10.1002/hec.3821
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Does retirement improve health and life satisfaction?

Abstract: We utilize panel data from the Health and Retirement Study to investigate the impact of retirement on physical and mental health, life satisfaction, and health care utilization. Because poor health can induce retirement, we instrument for retirement using eligibility for Social Security and employer-sponsored pensions and coverage by the Social Security earnings test. We find strong evidence that retirement improves reported health, mental health, and life satisfaction. In addition, we find evidence of improve… Show more

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Cited by 119 publications
(78 citation statements)
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References 54 publications
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“…They conclude that retired individuals are more likely to use physician services when compared with the self-employed (but not to employees). Using US and German data, respectively, Gorry, Gorry, and Slavov (2015) and Eibich (2015), model retirement decisions jointly with healthcare utilization, but do not find any statistically significant impact of retirement. In a cross-country analysis for 10 European countries, Celidoni and Rebba (2017) investigate the causal effect of retiring from work on individuals' lifestyles and on doctor's visits but do not find any statistically significant effect.…”
Section: Introductionmentioning
confidence: 81%
“…They conclude that retired individuals are more likely to use physician services when compared with the self-employed (but not to employees). Using US and German data, respectively, Gorry, Gorry, and Slavov (2015) and Eibich (2015), model retirement decisions jointly with healthcare utilization, but do not find any statistically significant impact of retirement. In a cross-country analysis for 10 European countries, Celidoni and Rebba (2017) investigate the causal effect of retiring from work on individuals' lifestyles and on doctor's visits but do not find any statistically significant effect.…”
Section: Introductionmentioning
confidence: 81%
“…The most frequently used instrument is age-specific retirement incentives, such as early retirement windows or eligibility age thresholds. This strategy has been used both in cross-country studies (e.g., Rohwedder et al 2010;Sahlgren 2012;Heller-Sahlgren 2017;Mazzona andPeracchi 2012, 2017;Coe and Zamarro 2011;Godard 2016) and in within-country studies (e.g., Charles 2004; Bound and Waidmann 2007;Neuman 2008;Bonsang et al 2012;Gorry et al 2015;Behncke 2012). The identifying assumption is that the instruments affect health only indirectly through their effects on the age of retirement.…”
Section: Previous Literaturementioning
confidence: 99%
“…For instance, the mandate to provide maternity and parental leave is consistent with intentional legislative strategy to increase fertility rates and achieve gender equity. 42 Reported impacts of retirement on health are mixed, [43][44][45] with some researchers indicating that retirement is associated with health improvements [46][47][48] and others indicating that retirement negatively impacts health. [49][50][51] Regardless, retirement is likely to remain a standard stage of Canadians work lives; this is especially true in healthcare, where employerprovided pension plans often incentivize early retirement.…”
Section: Discussionmentioning
confidence: 99%