Heterogeneous Effects of Retirement on Health: Evidence from Japan

Mingjia Xie, Ting Yin, Emiko Usui and Yi Zhang

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: We examine the heterogeneous effects of retirement on retirees’ health in Japan using the Marginal Treatment Effect framework. Using data from Japanese Study of Aging and Retirement (JSTAR), we find that the effect of retirement on health is trivial and statistically insignificant overall; however, there are heterogeneous effects with respect to the likelihood of being retired. Individuals who are less likely to retire are more prone to be negatively affected by retirement whereas those who are more likely to retire are more inclined to be positively affected. This finding suggests that policies restraining the likelihood of being retired, e.g., increasing the mandatory retirement age, would cause a negative health impact in the population.

Pages: 22 pages
Date: 2025-01
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Persistent link: https://EconPapers.repec.org/RePEc:eti:dpaper:25002

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