Retirement and Unexpected Health Shocks

Abstract : Is retirement good for your health? This article explores the impact of retirement on unexpected health evolutions. Using data from the annual Household, Income and Labour Dynamics in Australia survey (2001-2014), we construct measures of the mismatch between each person’s expected and actual health evolution (hereafter, “health shocks”). We find that after retirement, the probability of negative shocks decreases and the likelihood of positive health shocks increases, for both genders. These shocks translate into variations of life satisfaction in the same direction (i.e. unexpected positive health shocks increase life satisfaction). Other indicators of mental and physical health taken from the SF-36 vary in the same way, i.e. improve unexpectedly after retirement. By definition, health shocks are immune to the problem of reverse causality that could run from health to retirement. Hence, our findings are consistent with a positive impact of retirement on health.
Document type :
Preprints, Working Papers, ...
Complete list of metadatas

Cited literature [25 references]  Display  Hide  Download

https://halshs.archives-ouvertes.fr/halshs-01670486
Contributor : Caroline Bauer <>
Submitted on : Thursday, May 17, 2018 - 11:58:27 AM
Last modification on : Tuesday, February 12, 2019 - 11:08:30 AM

File

201759_2.pdf
Files produced by the author(s)

Identifiers

  • HAL Id : halshs-01670486, version 2

Citation

Bénédicte H. Apouey, Cahit Guven, Claudia Senik. Retirement and Unexpected Health Shocks. 2018. ⟨halshs-01670486v2⟩

Share

Metrics

Record views

113

Files downloads

350