Scandinavian Working Papers in Economics

Working Paper Series,
IFAU - Institute for Evaluation of Labour Market and Education Policy

No 2014:12: Early retirement and post retirement health

Daniel Hallberg (), Per Johansson () and Malin Josephson ()
Additional contact information
Daniel Hallberg: The Swedish Social Insurance Inspectorate (ISF), Postal: P O Box 202, 101 24 Stockholm, Sweden
Per Johansson: IFAU - Institute for Evaluation of Labour Market and Education Policy, Postal: P O Box 513, SE-751 20 Uppsala, Sweden
Malin Josephson: the Swedish Social Insurance Inspectorate (ISF), Postal: P O Box 202, 101 24 Stockholm, Sweden

Abstract: This paper studies empirically the consequences of retirement on health. We make use of a targeted retirement offer to army employees 55 years of age or older. Before the offer was implemented in the Swedish defense, the normal retirement age was 60 years of age. Estimating the effect of the offer on individuals’ health within the age range 56-70, we find support for a reduction in both mortality and in inpatient care as a consequence of the early retirement offer. Increasing the mandatory retirement age may thus not only have positive government income effects but also negative effects on increasing government health care expenditures.

Keywords: Health; mortality; inpatient care; retirement; health care; pensions; occupational pensions

JEL-codes: I18; J22; J26

41 pages, May 19, 2014

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Published as
Daniel Hallberg, Per Johansson and Malin Josephson, (2015), 'Is an early retirement offer good for your health? Quasi-experimental evidence from the army', Journal of Health Economics, vol 44, pages 274-285

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