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Health, Retirement and Economic Shocks

Author

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  • Martinez-Jimenez, Mario

    (Lancaster University)

  • Hollingsworth, Bruce

    (Lancaster University)

  • Zucchelli, Eugenio

    (Universidad Autónoma de Madrid)

Abstract

We explore the effects of retirement on both physical and mental ill-health and whether these change in the presence of economic shocks. We employ inverse probability weighting regression adjustment to examine the mechanisms influencing the relationship between retirement and health and a difference-in-differences approach combined with matching to investigate whether the health effects of retirement are affected by the Great Recession. We estimate these models on data drawn from the English Longitudinal Study of Ageing (ELSA) and find that retirement leads to a deterioration in both mental and physical health, however there seems to be considerable effect heterogeneity by gender and occupational status. Our findings also suggest that retiring shortly after the Great Recession appears to improve mental and physical health, although only among individuals working in the most affected regions. Overall, our results indicate that the health effects of retirement might be influenced by the presence of economic shocks.

Suggested Citation

  • Martinez-Jimenez, Mario & Hollingsworth, Bruce & Zucchelli, Eugenio, 2021. "Health, Retirement and Economic Shocks," IZA Discussion Papers 14574, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp14574
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    References listed on IDEAS

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    Cited by:

    1. Joe Spearing, 2024. "The effect of retirement eligibility on mental health in the United Kingdom: Heterogeneous effects by occupation," Health Economics, John Wiley & Sons, Ltd., vol. 33(8), pages 1621-1648, August.
    2. Jan C. van Ours, 2022. "How Retirement Affects Mental Health, Cognitive Skills and Mortality; An Overview of Recent Empirical Evidence," De Economist, Springer, vol. 170(3), pages 375-400, August.

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    More about this item

    Keywords

    retirement; health; Great Recession; ELSA;
    All these keywords.

    JEL classification:

    • 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
    • I10 - Health, Education, and Welfare - - Health - - - General

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