Retirement and Unexpected Health Shocks

Bénédicte Apouey, Cahit Guven () and Claudia Senik ()
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Claudia Senik: PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique

PSE-Ecole d'économie de Paris (Postprint) from HAL

Abstract: Is retirement good for your health? We complement previous studies by exploring the effect of retirement on unexpected health evolution. Using panel data from the Household, Income and Labour Dynamics in Australia survey (2001-2014), we construct measures of the mismatch between individual expected and actual health evolution (hereafter "health shocks"). In our approach, reverse causation running from health shocks to retirement is highly unlikely, because we look at shocks that happen after retirement, and those shocks are, by definition, unanticipated. We find that retirement decreases the probability of negative shocks (by approximately 16% to 24% for men and 14% to 23% for women) while increasing the likelihood of positive shocks (by 9% to 14% for men and 10% to 13% for women). This result is robust to the use of different lead-lag structures and of alternative measures of health change. Our findings are thus consistent with a positive impact of retirement on health.

Date: 2019-05
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Citations: View citations in EconPapers (8)

Published in Economics and Human Biology, 2019, 33, pp.116-123. ⟨10.1016/j.ehb.2019.01.009⟩

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Related works:
Journal Article: Retirement and Unexpected Health Shocks (2019)
Working Paper: Retirement and Unexpected Health Shocks (2019)
Working Paper: Retirement and Unexpected Health Shocks (2019)
Working Paper: Retirement and Unexpected Health Shocks (2019)
Working Paper: Retirement and Unexpected Health Shocks (2017)
Working Paper: Retirement and Unexpected Health Shocks (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:pseptp:halshs-02072596

DOI: 10.1016/j.ehb.2019.01.009

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