Advanced

Occupational-Based Effects of Retirement on Health

Hanemann, Felizia LU (2012) NEKP01 20121
Department of Economics
Abstract
Many European countries have recently decided to increase their statutory retirement ages because the demographic change poses a challenge to the stability of social security systems. The success of this policy depends among others on the health effect of such a delayed retirement. This study analyzes the effect of retirement on mental and physical health and further examines whether the health effect depends on the type of occupation. For this purpose, a cross-country analysis is applied on the basis of the Survey of Health, Ageing and Retirement in Europe (SHARE) dataset. To control for endogeneity, country-specific eligibility ages for early and full retirement are used for an instrumental variable approach. Overall, the results suggest... (More)
Many European countries have recently decided to increase their statutory retirement ages because the demographic change poses a challenge to the stability of social security systems. The success of this policy depends among others on the health effect of such a delayed retirement. This study analyzes the effect of retirement on mental and physical health and further examines whether the health effect depends on the type of occupation. For this purpose, a cross-country analysis is applied on the basis of the Survey of Health, Ageing and Retirement in Europe (SHARE) dataset. To control for endogeneity, country-specific eligibility ages for early and full retirement are used for an instrumental variable approach. Overall, the results suggest a health-preserving effect of retirement as indicated by a 12 percent decrease in the likelihood of reporting bad health and by an improvement in a defined health index by a one-quarter standard deviation. Concerning the occupational-based effects of retirement on health, the results are as expected: Retiring from a blue collar occupation has significant positive effects on health whereas retiring from a white collar occupation influences health negatively. The policy implication of these findings is to increase the statutory retirement ages for white collar workers and to implement special pension schemes for blue collar workers which allow them to retire earlier according to the number of years they have been working in a physically harmful occupation. (Less)
Please use this url to cite or link to this publication:
author
Hanemann, Felizia LU
supervisor
organization
course
NEKP01 20121
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Economics of Ageing, Retirement Ages, Demographic Change, Health Economics
language
English
id
2688780
date added to LUP
2012-06-15 09:27:57
date last changed
2014-05-06 14:57:00
@misc{2688780,
  abstract     = {Many European countries have recently decided to increase their statutory retirement ages because the demographic change poses a challenge to the stability of social security systems. The success of this policy depends among others on the health effect of such a delayed retirement. This study analyzes the effect of retirement on mental and physical health and further examines whether the health effect depends on the type of occupation. For this purpose, a cross-country analysis is applied on the basis of the Survey of Health, Ageing and Retirement in Europe (SHARE) dataset. To control for endogeneity, country-specific eligibility ages for early and full retirement are used for an instrumental variable approach. Overall, the results suggest a health-preserving effect of retirement as indicated by a 12 percent decrease in the likelihood of reporting bad health and by an improvement in a defined health index by a one-quarter standard deviation. Concerning the occupational-based effects of retirement on health, the results are as expected: Retiring from a blue collar occupation has significant positive effects on health whereas retiring from a white collar occupation influences health negatively. The policy implication of these findings is to increase the statutory retirement ages for white collar workers and to implement special pension schemes for blue collar workers which allow them to retire earlier according to the number of years they have been working in a physically harmful occupation.},
  author       = {Hanemann, Felizia},
  keyword      = {Economics of Ageing,Retirement Ages,Demographic Change,Health Economics},
  language     = {eng},
  note         = {Student Paper},
  title        = {Occupational-Based Effects of Retirement on Health},
  year         = {2012},
}