The Influence of Old-age Retirement on Health: Causal Evidence from the Finnish Register Data
Pekka Martikainen and
Tarmo Valkonen ()
No 67, ETLA Working Papers from The Research Institute of the Finnish Economy
Abstract We quantify the impact of old-age retirement on health using longitudinal Finnish register data for the period 2000–2012, which allows for a strict isolation of the effects of transition from work to retirement for both mental and physical health indicators. We use the lowest statutory eligibility age for full old-age pensions, 63 years, as an instrument in FE-IV estimation to ensure causal inference. We find that (1) retirement moderately decreases the use of antidepressants, especially for women; (2) the beneficial effects of retirement on the cardiovascular and musculoskeletal conditions are smaller and more diffused; (3) there is no robust evidence that retirement effects vary systematically among socioeconomic groups, although more robust declines in musculoskeletal diseases were observed among manual-labour men; and (4) the beneficial effects in antidepressant use can be extended to apply to most Finns retiring at ages 62–64 based on our test of external validity.
Keywords: Health; Health behaviour; Retirement; Retirement policies; Demographic economics (search for similar items in EconPapers)
JEL-codes: I10 I12 J26 J18 (search for similar items in EconPapers)
Pages: 26 pages
New Economics Papers: this item is included in nep-age, nep-dem, nep-eur, nep-hea and nep-lma
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Persistent link: https://EconPapers.repec.org/RePEc:rif:wpaper:67
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