Scandinavian Working Papers in Economics

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

No 2015:29: Health, work capacity and retirement in Sweden

Per Johansson (), Lisa Laun () and Mårten Palme ()
Additional contact information
Per Johansson: Uppsala University, IFAU, Postal: Uppsala, Sweden
Lisa Laun: IFAU - Institute for Evaluation of Labour Market and Education Policy, Postal: Institute for Evaluation of Labour Market and Education Policy, P O Box 513, SE-751 20 Uppsala, Sweden
Mårten Palme: Department of Economics, Stockholm University, Postal: Stockholm, Sweden

Abstract: Following an era of a development towards earlier retirement, there has been a reversed trend to later exit from the labor market in Sweden since the late 1990s. We investigate whether or not there are potentials, with respect to health and work capacity of the population, for extending this trend further. We use two different methods. First, the Milligan and Wise (2012) method, which calculates how much people would participate in the labor force at a constant mortality rate. Second, the Cutler et al. (2012) method, which asks how much people would participate in the labor force if they would work as much as the age group 50-54 at a particular level of health. We also provide evidence on the development of self-assessed health and health inequality in the Swedish population.

Keywords: SHARE; Health inequality

JEL-codes: I10; J26

29 pages, December 3, 2015

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