Health and Aging Before and After Retirement
36 Pages Posted: 16 Jul 2020
Date Written: June 24, 2020
In this paper, we investigate health and aging before and after retirement for speciﬁc occupational groups. We use ﬁve waves of the Survey of Health, Aging, and Retirement in Europe (SHARE) dataset and construct a frailty index for elderly men and women from 10 European countries. We classify occupation by low vs. high education, blue vs. white collar color, and by high vs. low physical or psychosocial job burden. Controlling for individual ﬁxed effects, we ﬁnd that, regardless of the used classiﬁcation, workers from the ﬁrst (low status) group display more health deﬁcits at any age and accumulate health deﬁcits faster than workers from the second (high status) group. We instrument retirement by statutory retirement ages (“normal” and “early”) and ﬁnd that the health of workers in low status occupations beneﬁts greatly from retirement, whereas retirement eﬀects for workers in high status occupations are small and frequently insigniﬁcant. We also ﬁnd that workers from low status occupations accumulate health deﬁcits faster after retirement, i.e. we ﬁnd evidence for an occupational health gradient that widens with increasing age, before and after retirement.
Keywords: health deﬁcits, occupation, retirement, frailty index, Europe
JEL Classification: I10, I19, J13
Suggested Citation: Suggested Citation