The impact of health on labor supply near retirement

Monica S R D Costa-Dias; Richard Blundell; Jack Britton; Eric  French

doi:10.3368/jhr.58.3.1217-9240R4

The impact of health on labor supply near retirement

Monica S R D Costa-Dias
, Richard Blundell
, Jack Britton
, Eric French^*

^*Corresponding author for this work

School of Economics

Research output: Contribution to journal › Article (Academic Journal) › peer-review

49 Citations (Scopus)

144 Downloads (Pure)

Abstract

Estimates of how health affects employment vary considerably. We assess how different methods and health measures impact estimates of the impact of health on employment using a unified framework for the US and England. We find that subjective and objective health measures, and subjective measures instrumented by objective measures produce similar estimates when using sufficiently rich objective measures. Moreover, a single health index can capture the relevant health variation for employment. Health deterioration explains up to 15% of the decline in employment between ages 50 and 70. Effects are larger for the US than England, and for the low educated.

Original language	English
Number of pages	81
Journal	Journal of Human Resources
Early online date	19 Jan 2021
DOIs	https://doi.org/10.3368/jhr.58.3.1217-9240R4
Publication status	E-pub ahead of print - 19 Jan 2021

Keywords

health
cognition
labor supply
retirement

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abstract = "Estimates of how health affects employment vary considerably. We assess how different methods and health measures impact estimates of the impact of health on employment using a unified framework for the US and England. We find that subjective and objective health measures, and subjective measures instrumented by objective measures produce similar estimates when using sufficiently rich objective measures. Moreover, a single health index can capture the relevant health variation for employment. Health deterioration explains up to 15\% of the decline in employment between ages 50 and 70. Effects are larger for the US than England, and for the low educated.",

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AB - Estimates of how health affects employment vary considerably. We assess how different methods and health measures impact estimates of the impact of health on employment using a unified framework for the US and England. We find that subjective and objective health measures, and subjective measures instrumented by objective measures produce similar estimates when using sufficiently rich objective measures. Moreover, a single health index can capture the relevant health variation for employment. Health deterioration explains up to 15% of the decline in employment between ages 50 and 70. Effects are larger for the US than England, and for the low educated.

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The impact of health on labor supply near retirement

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Keywords

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