Health and Work of the Elderly: Subjective Health Measures, Reporting Errors and the Endogenous Relationship Between Health and Work

In empirical studies of retirement decisions of the elderly, health is often found to have a large, if not dominant, effect. Depending on which health measures are used, these estimated effects may be biased estimates of the causal effect of health on the dependent variable(s).Research indicates that subjective, self-assessed health measures may be affected by endogenous reporting behaviour and even if an objective health measure is used, it is not likely to be strictly exogenous to labour market status or labour income. Health and labour market variables will be correlated because of unobserved individual-specific characteristics (e.g., investments in human capital and health capital). Moreover, one's labour market status may be expected to have a (reverse) causal effect on current and future health. In this paper we analyse the relative importance of these endogeneity and measurement issues in the context of a model of early retirement decisions. We state assumptions under which we can use relatively simple methods to assess the relative importance of state dependent reporting errors in individual responses to health questions. The estimation results indicate that among respondents receiving disability insurance allowance, reporting errors are large and systematic and that therefore using these measures in retirement models may seriously bias the parameter estimates and the conclusions drawn from these. We furthermore found that health deteriorates with work and that the two variables are endogenously related.

Does Retirement Kill You? Evidence from Early Retirement Windows

The effect that health has on the retirement decision has long been studied. We examine the reverse relationship, whether retirement has a direct impact on later-life health. To identify the causal relationship, we use early retirement window offers to instrument for retirement. We find no negative effects of early retirement on men’s health, and if anything, a temporary increase in self-reported health and improvements in health of highly educated workers. While this is consistent with previous literature using Social Security ages as instruments, we also find that anticipation of retirement might be important, and bias the previous estimates downwards.retirement;depression;self-reported health;heart attack;cancer;diabetes;instrumental variables

Does Retirement Kill You? Evidence from Early Retirement Windows

The magnitude of the effect that health has on the retirement decision has long been studied. We examine the reverse relationship, whether or not retirement has a direct impact on later-life health. In order to identify the causal relationship, we use unexpected early retirement window offers to instrument for retirement behavior. They are legally required to be unrelated to the baseline health of the individual, and are significant predictors of retirement. We find that there is no negative effect of early retirement on men's health, and if anything, a temporary increase in self-reported health and improvements in health of highly educated workers. While this is consistent with previous literature using Social Security ages as instruments, we also find some evidence that anticipation of retirement might also be important, and might bias the previous estimates towards zero.health, retirement, instrument, causal effect

Dreams: The Effects of Changing the Pension System Late in the Game

This paper assesses the impact of a dramatic reform of the Dutch pension system on mental health, savings behavior and retirement expectations of workers nearing retirement age. The reform means that public sector workers born on January 1, 1950 or later face a substantial reduction in their pension rights while workers born before this threshold date may still retire under the old, more generous rules. We employ a unique matched survey and administrative data set comprising male public sector workers born in 1949 and 1950 and find strong ex ante effects on mental health for workers who are affected by the reform. This effect increases as birth dates approach the threshold date. Furthermore, the effects differ in accordance with worker characteristics. Finally, we find that the response of those affected by the reform is to work longer and to save more.labour economics ;

The effect of work on mental health: Does occupation Matter?

mental health panel data model labour market status occupation

Shattered Dreams: The Effects of Changing the Pension System Late in the Game

This paper assesses the impact of a dramatic reform of the Dutch pension system on mental health, savings behavior and retirement expectations of workers nearing retirement age. The reform means that public sector workers born on January 1, 1950 or later face a substantial reduction in their pension rights while workers born before this threshold date may still retire under the old, more generous rules. We employ a unique matched survey and administrative data set comprising male public sector workers born in 1949 and 1950 and find strong ex ante effects on mental health for workers who are affected by the reform. This effect increases as birth dates approach the threshold date. Furthermore, the effects differ in accordance with worker characteristics. Finally, we find that the response of those affected by the reform is to work longer and to save more.mental health, retirement, pension reform, causal effect

Introduction: What Keck and Mithouard Actually Said – and its Legacy

The European Court of Justice's judgment in Keck and Mithouard (joined cases C-267/91 and C-268/91 ECLI:EU:C:1993:905) is one of the crucial judgments in the development of the free movement of goods, and EU internal market law more generally. Keck generated a vast number of scholarly commentaries. Its legacy has continued to be widely debated following more recent judgments including Commission v Italy (trailers) (case C-110/05 ECLI:EU:C:2009:66) and Deutsche Parkinson Vereinigung (case C-148/15 ECLI:EU:C:2016:776). This Introduction aims to briefly revisit the developments leading to the Keck judgment, the central parts of the Court's reasoning, and its legacy in subsequent case law. It will conclude with a brief introduction to the four rewritings in this issue

Formalism in Competition Law

This article analyzes the meaning and role of formalism in competition law. Drawing on general legal theory and philosophy, this article conceives of formalism as decision-making constrained by rules, whereby rules exclude considerations from the decision-making process. It analyzes the degree to which per se rules and the rule of reason in U.S. antitrust law and the category of “by object” restrictions in EU competition law involve formalistic reasoning. It subsequently discusses the relationship between “legal form” and “anticompetitive effects” and the debate on “form-based” versus “effects-based” approaches to competition law. It concludes that “effects-based” approaches to competition law typically involve formalistic legal rules, thus deconstructing the well-known form–effect dichotomy. Finally, this article analyzes the normative relationship between formalism, type 1 and 2 errors, and legal certainty, and argues that this relationship is fundamentally shaped by beliefs about institutional competence and the allocation of decisional jurisdiction. The article concludes by arguing against pejorative conceptions of “formalistic” and “form-based” competition law. Competition law, like law in general, is inherently formalistic, albeit to a limited degree. Rather than the empty dichotomy of “form” versus “effect,” the central question in competition law is to which formalism it ought to be committed

A Dynamic Analysis of the Demand for Health Insurance and Health Care

We investigate the presence of moral hazard and advantageous or adverse selection in a market for supplementary health insurance. For this we specify and estimate dynamic models for health insurance decisions and health care utilization. Estimates of the health care utilization models indicate that moral hazard is not important. Furthermore, we find strong evidence for advantageous selection, largely driven by heterogeneity in education, income and health preferences. Finally, we show that ignoring dynamics and unobserved fixed effects changes the results dramatically.advantageous selection, health care utilization, supplementary private health insurance, moral hazard, panel data