The Effects of an Increase in the Retirement Age on Health – Evidence from Administrative Data

Arbeitspapier

This study analyzes the causal effect of an increase in the retirement age on health. We exploit a sizable cohort-specific pension reform for women using two complementary empirical approaches – a Regression Discontinuity Design and a Difference-in-Differences approach. The analysis is based on official records covering all individuals insured by the public health system in Germany and including all certified diagnoses by practitioners. This enables us to gain a detailed understanding of the multi-dimensionality in these health effects. The empirical findings reflect the multi-dimensionality but allow for deriving two broader conclusions. We provide evidence that the increase in the retirement age negatively affects health outcomes as the prevalence of several diagnoses, e.g., mental health, musculoskeletal diseases, and obesity, increases. In contrast, we do not find support for an improvement in health related to a prolonged working life since there is no significant evidence for a reduction in the prevalence of any health outcome we consider. These findings hold for both identification strategies, are robust to sensitivity checks, and do not change when correcting for multiple hypothesis testing.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 14893

Classification and Topics

• Classification: Wirtschaft ; Health: General ; Health Behavior ; Health: Government Policy; Regulation; Public Health ; Economics of the Elderly; Economics of the Handicapped; Non-labor Market Discrimination ; Demographic Economics: Public Policy ; Retirement; Retirement Policies
• Subject: Germany ; retirement ; pension reform ; health ; ICD-10 ; Regression Discontinuity Design ; Difference-in-Differences

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Barschkett, Mara ; Geyer, Johannes ; Haan, Peter ; Hammerschmid, Anna
• Event: Veröffentlichung
• (who): Institute of Labor Economics (IZA)
• (where): Bonn
• (when): 2021

Further information

• Handle: http://hdl.handle.net/10419/250554
• Last update: 10.03.2025, 11:44 AM CET