Retirement and healthcare utilization

Wolfgang Frimmel and Gerald Pruckner

No 2018-02, CDL Aging, Health, Labor working papers from The Christian Doppler (CD) Laboratory Aging, Health, and the Labor Market, Johannes Kepler University Linz, Austria

Abstract: Pension systems and reforms thereof are often discussed in the context of financial viability. In industrialized countries, these debates grow in intensity with the aging of the population; however, an increase in retirement age may create unintended side effects with regards to retiree health or healthcare costs. This study empirically analyzes the effect of (early) retirement on individual inpatient and outpatient healthcare expenditure in Austria. We use comprehensive labor market and retirement data from the Austrian Social Security Database, together with detailed information about individual inpatient and outpatient healthcare service utilization in the province of Upper Austria. To account for endogeneity in retirement decisions, we exploit exogenous variation in the early retirement age as induced by two Austrian pension reforms (i.e., those in 2000 and 2003). We find there to be significant negative effects of retirement on healthcare expenditure. For both genders, retirement reduces subsequent expenditure for outpatient medical attendance and hospitalization. Analyses of disaggregated components of healthcare expenditure confirm a positive health effect caused by physical and emotional relief following retirement. Apart from direct health effects, the results also reveal behavioral changes in the utilization of healthcare services. These changes in health behavior seem particularly relevant among blue-collar workers.

Keywords: retirement; healthcare expenditure; health behavior; instrumental variable (search for similar items in EconPapers)
JEL-codes: H51 I11 I12 J26 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2018-05
Note: English
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://cdecon.jku.at/wp-content/uploads/wp1802CD.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
Journal Article: Retirement and healthcare utilization (2020)
Working Paper: Retirement and healthcare utilization (2018)
Working Paper: Retirement and healthcare utilization (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jku:cdlwps:wp1802

Access Statistics for this paper

More papers in CDL Aging, Health, Labor working papers from The Christian Doppler (CD) Laboratory Aging, Health, and the Labor Market, Johannes Kepler University Linz, Austria Contact information at EDIRC.
Bibliographic data for series maintained by René Böheim ().