Retirement blues

Journal of Health Economics
Gabriel Heller-Sahlgren

Abstract

This paper analyses the short- and longer-term effects of retirement on mental health in ten European countries. It exploits thresholds created by state pension ages in an individual-fixed effects instrumental-variable set-up, borrowing intuitions from the regression-discontinuity design literature, to deal with endogeneity in retirement behaviour. The results display no short-term effects of retirement on mental health, but a large negative longer-term impact. This impact survives a battery of robustness tests, and applies to women and men as well as people of different educational and occupational backgrounds similarly. Overall, the findings suggest that reforms inducing people to postpone retirement are not only important for making pension systems solvent, but with time could also pay a mental health dividend among the elderly and reduce public health care costs.

Citations

May 18, 2019·The Journals of Gerontology. Series B, Psychological Sciences and Social Sciences·Maria FleischmannJenny Head
Sep 8, 2018·The European Journal of Health Economics : HEPAC : Health Economics in Prevention and Care·Dominique AnxoChizheng Miao
Jan 8, 2021·BMC Health Services Research·Sarah HewkoCharlene VanLeeuwen
Feb 21, 2021·Social Science & Medicine·Sae Hwang Han
Mar 16, 2021·Health Psychology Open·Teshome Sirak Bedaso, Buxin Han
Jun 2, 2021·The International Journal of Health Planning and Management·Lin XieHualei Yang
Jul 13, 2021·Review of Economics of the Household·Danilo Cavapozzi, Chiara Dal Bianco

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