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Impact of late and prolonged working life on subjective health: the Swedish experience

Dominique Anxo (), Thomas Ericson () and Chizheng Miao
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Thomas Ericson: School of Business and Economics, Linnaeus University
Chizheng Miao: School of Business and Economics, Linnaeus University

The European Journal of Health Economics, 2019, vol. 20, issue 3, 389-405

Abstract: Abstract This paper explores the relationship between the prolongation of working life and subjective health. Drawing on a unique combination of longitudinal data and the results of a postal survey in Sweden, we investigate the health consequences of extending working life beyond the normal retirement age of 65. To do this, we compare the health status of two groups of retired people: one group who left the labour market completely at the age of 65, and a second group who remained in employment after the age of 65. Using a standard linear probability model and controlling for a range of socio-economic variables as well as previous labour market experiences, perceived life expectancy, pre-retirement income and health, our estimations show that those continuing to work after 65 on average display a 6.8% higher probability of reporting better health during retirement than those leaving at the age of 65. However, we find that this positive correlation between the extension of working life and health is only transitory. After 6 years of retirement, the health advantage of working after the normal retirement age disappears. Furthermore, we did not find any evidence that working after the age of 65 is positively correlated with physical fitness, self-reported depressive symptoms or well-being.

Keywords: Extending working life; Self-assessed health; Retirement; Sweden (search for similar items in EconPapers)
JEL-codes: I12 J14 J26 (search for similar items in EconPapers)
Date: 2019
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