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The Impact of Voluntary and Involuntary Retirement on Mental Health: Evidence from Older Irish Adults

Author

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  • Mosca, Irene

    (National University of Ireland, Maynooth)

  • Barrett, Alan

    (ESRI, Dublin)

Abstract

The few studies that have attempted to identify the causal effects of retirement on mental health and well-being have provided conflicting evidence. Hence, whether retirement affects mental health positively or negatively is still unclear. Our primary objective is to investigate the impact of retirement on mental health as measured by the 20-item Center for Epidemiological Studies Depression Scale (CES-D). We use data from the first two waves of The Irish Longitudinal Study on Ageing (TILDA). This is a nationally representative sample of individuals aged 50 and over and living in Ireland. To deal with possible endogeneity problems, we use first-differenced estimation models and control for a broad range of life events occurring between the two waves. These include transition to retirement but also demographic, social, economic and physical health events. As part of the TILDA survey, reasons for retirement are asked. We exploit this information and distinguish between individuals who retired voluntarily, involuntarily or because of own ill health. We find that involuntary, or forced, retirement has a negative and statistically significant effect on mental health. In contrast, we find no effects for voluntary retirement. We also find that retirement due to ill health is negatively associated with mental health.

Suggested Citation

  • Mosca, Irene & Barrett, Alan, 2014. "The Impact of Voluntary and Involuntary Retirement on Mental Health: Evidence from Older Irish Adults," IZA Discussion Papers 8723, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8723
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    References listed on IDEAS

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    Cited by:

    1. Mattia Filomena & Matteo Picchio, 2023. "Retirement and health outcomes in a meta‐analytical framework," Journal of Economic Surveys, Wiley Blackwell, vol. 37(4), pages 1120-1155, September.
    2. Walsh, Brendan & Doorley, Karina, 2022. "Occupations and health," Papers BP2023/3, Economic and Social Research Institute (ESRI).
    3. Heller-Sahlgren, Gabriel, 2017. "Retirement blues," Journal of Health Economics, Elsevier, vol. 54(C), pages 66-78.
    4. Pierre-Jean Messe & François-Charles Wolff, 2019. "Healthier when retiring earlier? Evidence from France," Applied Economics, Taylor & Francis Journals, vol. 51(47), pages 5122-5143, October.
    5. Boman, Anders, 2015. "Spending time together? Effects on the retirement decision from partner’s labour market status," Working Papers in Economics 618, University of Gothenburg, Department of Economics.
    6. Dr. G. Gowsalya & Dr.R.Preetha, 2021. "Social conditions of voluntary retirement scheme opted employees among selected large steel manufacturing organizations," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 12(3), pages 19-28, September.
    7. Jan Mertl & Lenka Farkačová, 2024. "Supporting Voluntary Prolonged Labour Market Participation Through Fiscally Sustainable Schemes," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 69(240), pages 57-87, January –.

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    More about this item

    Keywords

    retirement; mental health;

    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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