Your Retirement and My Health Behaviour: Evidence on Retirement Externalities from a Fuzzy Regression Discontinuity Design

Tobias Müller and Mujaheed Shaikh

MPRA Paper from University Library of Munich, Germany

Abstract: This paper presents evidence on intra-household retirement externalities by assessing the causal effect of partner's retirement on own health behaviour in Europe. We identify partner's retirement effects by applying a fuzzy regression discontinuity (RD) framework using retirement eligibility as an exogenous instrument for partner's retirement status. Using data from the Survey of Health, Ageing and Retirement in Europe (SHARE) we find that while partner's retirement increases own physical activity, it also increases smoking by up to 7 cigarettes a day and increases alcohol intake by 1-2 drinks per day. Furthermore, we find that physical activity increases only for individuals that are themselves retired pointing toward compensated effects that arise due to husband's and wife's retirement being complements. Similarly, an increase in alcohol intake is observed only if the individuals are themselves retired and an increase in smoking is only observed if the partner is a smoker suggesting mutual positive externalities and leisure complementarities.

Keywords: Retirement Externalities; Health Behaviour; Fuzzy Regression Discontinuity Design (search for similar items in EconPapers)
JEL-codes: C26 I12 J26 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-age, nep-eur, nep-hea and nep-lma
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https://mpra.ub.uni-muenchen.de/70843/1/MPRA_paper_70843.pdf original version (application/pdf)

Related works:
Journal Article: Your retirement and my health behavior: Evidence on retirement externalities from a fuzzy regression discontinuity design (2018)
Working Paper: Your Retirement and My Health Behavior: Evidence on Retirement Externalities from a fuzzy regression discontinuity design (2017)
Working Paper: Your Retirement and My Health Behaviour: Evidence on Retirement Externalities from a Fuzzy Regression Discontinuity Design (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:70843

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