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Sick of retirement?

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  • Nielsen, Nick Fabrin

Abstract

This paper examines the causal effect of retirement on health and healthcare utilization using two identification strategies on Danish full population data. First, I use a reform of the statutory retirement age in an IV design. Second, I use a large discontinuity in retirement take-up at the earliest age of retirement (60) in a regression discontinuity design. The results show that early retirement leads to decreases in GP visits and hospitalizations of 8–10% in the short run. The reduction in GP visits is driven by a drop in female GP utilization, while both genders contribute equally to the decline in hospitalizations. Early retirement has no effect on health measured by comorbidities or mortality. Statutory retirement has no effect on health or healthcare utilization. The results suggest that gender, age at retirement and complier composition are important sources of heterogeneity.

Suggested Citation

  • Nielsen, Nick Fabrin, 2019. "Sick of retirement?," Journal of Health Economics, Elsevier, vol. 65(C), pages 133-152.
    • Handle: RePEc:eee:jhecon:v:65:y:2019:i:c:p:133-152
    DOI: 10.1016/j.jhealeco.2019.03.008
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    More about this item

    Keywords

    Retirement; Health; Healthcare utilization;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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