Scandinavian Working Papers in Economics

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

No 2016:11: What are the Health effects of postponing retirement? An instrumental variable approach

Johannes Hagen ()
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Johannes Hagen: Department of economics, Uppsala university, Postal: Uppsala, Sweden

Abstract: This essay estimates the causal effect of postponing retirement on a wide range of health outcomes using Swedish administrative data on cause-specific mortality, hospitalizations and drug prescriptions. Exogenous variation in retirement timing comes from a reform which raised the age at which broad categories of Swedish local government workers were entitled to retire with full pension benefits from 63 to 65. Instrumental variable estimation results show no evidence that postponing retirement impacts mortality or health care utilization.

Keywords: Health; mortality; Health care; pension reform; retirement

JEL-codes: I18; J22; J26

61 pages, June 15, 2016

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