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The Effect of Involuntary Retirement on Healthcare Use and Health Status

Author

Listed:
  • Anikó Bíró

    (Health and Population Lendület Research Group, Centre for Economic and Regional Studies, 1097 Budapest, Tóth Kálmán u. 4.)

  • Réka Branyiczki

    (Central European University and TÁRKI)

  • Péter Elek

    (Health and Population Lendület Research Group, Centre for Economic and Regional Studies, 1097 Budapest, Tóth Kálmán u. 4. and Institute of Economics, Corvinus University of Budapest)

Abstract

We analyse the causal effect of involuntary retirement on detailed indicators of healthcare use and health status. Our identification strategy is based on a pension reform in Hungary which forced public sector workers above the statutory retirement age to full time retirement. Using rich administrative data, we find that on the three-year horizon, involuntary retirement decreases the number of primary care doctor visits, the consumption of antiinfectives for systemic use and drugs of the respiratory system, and the non-zero spending on antiinfectives, the drugs of the alimentary tract and metabolism and of the cardiovascular system. We also find that the impact on the latter two drug categories is driven by the drop in income due to involuntary retirement. The effects of involuntary retirement are comparable to the short-run effects of voluntary retirement, identified from a change in the statutory retirement age. We conclude that there is little evidence for health deteriorating effects of involuntary retirement and provide explanations for the possible mechanisms behind our results.

Suggested Citation

  • Anikó Bíró & Réka Branyiczki & Péter Elek, 2021. "The Effect of Involuntary Retirement on Healthcare Use and Health Status," CERS-IE WORKING PAPERS 2122, Institute of Economics, Centre for Economic and Regional Studies.
    • Handle: RePEc:has:discpr:2122
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    References listed on IDEAS

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    More about this item

    Keywords

    healthcare use; involuntary retirement; voluntary retirement;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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