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The Effect of Removing Early Retirement on Mortality

Author

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  • Cristina Bellés-Obrero
  • Sergi Jiménez-Martín
  • Han Ye

Abstract

This paper studies the mortality effect of delaying retirement by investigating the impacts of the 1967 Spanish pension reform, which affected the general population and exogenously changed the early retirement age, depending on the date individuals started contributing to the pension system. Using the Spanish administrative data, we find that delaying retirement by one year increases the hazard of dying between the ages of 60 and 69 by 38 percent. We show that the reform leads to higher mortality in all subgroups, and the effects are statistically stronger for those employed in sectors with the highest workplace accidents and for those with low self-value jobs. Moreover, we show that allowing flexible retirement mitigates the adverse effects of delaying retirement.

Suggested Citation

  • Cristina Bellés-Obrero & Sergi Jiménez-Martín & Han Ye, 2023. "The Effect of Removing Early Retirement on Mortality," CRC TR 224 Discussion Paper Series crctr224_2023_410v2, University of Bonn and University of Mannheim, Germany, revised Jul 2024.
    • Handle: RePEc:bon:boncrc:crctr224_2023_410v2
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    Cited by:

    1. Chiara Malavasi & Han Ye, 2024. "Live Longer and Healthier: Impact of Pension Income for Low-Income Retirees," CRC TR 224 Discussion Paper Series crctr224_2024_514v2, University of Bonn and University of Mannheim, Germany.
    2. Todd Morris & Benoit Dostie, 2023. "Graying and staying on the job: The welfare implications of employment protection for older workers," Cahiers de recherche / Working Papers 15, Institut sur la retraite et l'épargne / Retirement and Savings Institute.
    3. repec:bon:boncrc:crctr224_2024_514 is not listed on IDEAS

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    More about this item

    Keywords

    Delaying retirement; Mortality; Heterogeneity; Work conditions;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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