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Retiring from Happiness? Analysis of retirement and mental health using SHARE data

Manxhuka, Bardh LU and Dumancic, Ea LU (2023) NEKN06 20221
Department 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)
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author
Manxhuka, Bardh LU and Dumancic, Ea LU
supervisor
organization
course
NEKN06 20221
year
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}},
}