Stress and Retirement

Raquel Fonseca (), Hugo Morin and Ana Moro-Egido

CIRANO Working Papers from CIRANO

Abstract: This paper investigates the bi-directional causal relationship between retirement and stress. We use PSID data for the period 2007-2015. Using a simultaneous equations approach, we find that a rise in stress increases the probability to retire by roughly 15.4 percentage points, while retirement decreases stress by 34.5 percentage points. We find the same results when we disaggregate by individuals’ characteristics, but the former effect is stronger for males, for people working in typical blue-collar jobs, and for people whose wealth is below the mean; while the latter is stronger for males, for white-collar workers, for people whose wealth is above the mean, and for white individuals. We show that official retirement ages are a strong instrument for actual retirement age, and that lagged physical activity levels are a non-linear instrument for perceived stress. We also confirm that objective measures of mental health are a strong instrument for perceived stress.

Keywords: Stress; Retirement; Physical Activity; Simultaneous Equation Models (search for similar items in EconPapers)
JEL-codes: C30 J26 (search for similar items in EconPapers)
Date: 2021-03-11
New Economics Papers: this item is included in nep-age, nep-eur, nep-hea and nep-lma
References: View references in EconPapers View complete reference list from CitEc
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Downloads: (external link)
https://cirano.qc.ca/files/publications/2021s-10.pdf

Related works:
Journal Article: Stress and retirement (2024)
Working Paper: Stress and Retirement (2022)
Working Paper: Stress and Retirement (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:cir:cirwor:2021s-10

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