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The Social Costs of Health-related Early Retirement in Germany: Evidence from the German Socio-Economic Panel

Gisela Hostenkamp and Michael Stolpe

Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, 2012, vol. 132, issue 2, 323-357

Abstract: Using data from the German Socio-economic Panel, we study how stratification in health and income contributes to the social cost of health-related early retirement, the balance of lost labour income and health benefits. On average, early retirees improve their health by almost two thirds of the loss suffered during the last four working years. We calibrate counterfactual scenarios and find keeping all workers in very good health, the highest of five categories of self-assessed health, would delay the average retirement age by more than three years and reduce the social costs by more than 20 percent.

JEL-codes: H55 I12 O15 (search for similar items in EconPapers)
Date: 2012
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