Retiring from Happiness? Analysis of retirement and mental health using SHARE data
(2023) NEKN06 20221Department of Economics
- Abstract
- We utilize data from the Survey of Health, Ageing and Retirement in Europe (SHARE) 1 to investigate the impact of retirement on mental health in a multi-country setting. To deal with endogeneity in retirement behaviour, we employ an individual-fixed effects IV strategy where pension eligibility thresholds at which financial incentives to retire are exploited to predict retirement behaviour. The combination of these quasi-experimental methods, with some borrowed intuition from the regression discontinuity literature, is the premise on which we are able to distinguish between short-, medium-, and long-term effects of retirement on mental health. Retirement is found to have no significant impact on mental health in the short- to medium-term.... (More)
- We utilize data from the Survey of Health, Ageing and Retirement in Europe (SHARE) 1 to investigate the impact of retirement on mental health in a multi-country setting. To deal with endogeneity in retirement behaviour, we employ an individual-fixed effects IV strategy where pension eligibility thresholds at which financial incentives to retire are exploited to predict retirement behaviour. The combination of these quasi-experimental methods, with some borrowed intuition from the regression discontinuity literature, is the premise on which we are able to distinguish between short-, medium-, and long-term effects of retirement on mental health. Retirement is found to have no significant impact on mental health in the short- to medium-term. However, we find solid evidence of a large and negative impact of retirement on mental health in the long-term. The mental health effect of retirement is found to be homogeneous in terms of gender and marital status, but heterogeneous across educational attainment levels. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9109426
- author
- Manxhuka, Bardh LU and Dumancic, Ea LU
- supervisor
-
- Ulf Gerdtham LU
- organization
- course
- NEKN06 20221
- year
- 2023
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- retirement, mental health, SHARE, fixed effects, IV
- language
- English
- id
- 9109426
- date added to LUP
- 2023-02-14 13:20:21
- date last changed
- 2023-02-14 13:20:21
@misc{9109426, abstract = {{We utilize data from the Survey of Health, Ageing and Retirement in Europe (SHARE) 1 to investigate the impact of retirement on mental health in a multi-country setting. To deal with endogeneity in retirement behaviour, we employ an individual-fixed effects IV strategy where pension eligibility thresholds at which financial incentives to retire are exploited to predict retirement behaviour. The combination of these quasi-experimental methods, with some borrowed intuition from the regression discontinuity literature, is the premise on which we are able to distinguish between short-, medium-, and long-term effects of retirement on mental health. Retirement is found to have no significant impact on mental health in the short- to medium-term. However, we find solid evidence of a large and negative impact of retirement on mental health in the long-term. The mental health effect of retirement is found to be homogeneous in terms of gender and marital status, but heterogeneous across educational attainment levels.}}, author = {{Manxhuka, Bardh and Dumancic, Ea}}, language = {{eng}}, note = {{Student Paper}}, title = {{Retiring from Happiness? Analysis of retirement and mental health using SHARE data}}, year = {{2023}}, }