Working Paper: CEPR ID: DP14135
Authors: Matteo Picchio; Jan C. van Ours
Abstract: We study the retirement effects on mental health using a fuzzy regression discontinuity design based on the eligibility age to the state pension in the Netherlands. We find that the mental effects are heterogeneous by gender and marital status. Retirement of partnered men positively affects mental health of both themselves and their partners. Single men retiring experience a drop in mental health. Female retirement has hardly any effect on their own mental health or the mental health of their partners. Part of the effects seem to be driven by loneliness after retirement.
Keywords: retirement; health; wellbeing; happiness; regression discontinuity design
JEL Codes: H55; J14; J26
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Retirement of partnered men (J26) | Positive effects on their own mental health (I12) |
| Retirement of partnered men (J26) | Positive effects on their partners' mental health (J12) |
| Retirement of single men (J26) | Drop in their mental health (I19) |
| Retirement of partnered women (J26) | Negligible effects on their own mental health (I12) |
| Retirement of partnered women (J26) | Negligible effects on their husbands' mental health (J12) |
| Increasing the state pension age (J26) | Adverse effects on the mental health of male workers (J28) |
| Increasing the state pension age (J26) | Adverse effects on the mental health of their wives (J12) |
| Retirement decisions flexibility (J26) | Improve welfare outcomes for single individuals (I39) |