ArticleHealth economics2013
A health production model with endogenous retirement.
Article in Health economics, 2013. The graph could read no effect estimate from its abstract, so it casts no vote on the map. Cited by 6 papers.
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Who cites it
6 citing papers in PubMed.
- Effect of retirement on self-rated oral health and dental services use: longitudinal fixed-effects instrumental variable study in 31 countries.Scandinavian journal of work, environment & health · 2024Article
- Does retirement affect secondary preventive care use? Evidence from breast cancer screening.Economics and human biology · 2021Article
- Financial hardship among cancer survivors in Southern New Jersey.Supportive care in cancer : official journal of the Multinational Association of Supportive Care in Cancer · 2021Article
- Accounting for the Rise of Health Spending and Longevity.Journal of the European Economic Association · 2021Article
- Health, work and working conditions: a review of the European economic literature.The European journal of health economics : HEPAC : health economics in prevention and care · 2016Review
- Health Inequalities through the Lens of Health Capital Theory: Issues, Solutions, and Future Directions.Research on economic inequality · 2013Article
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Authors and funding
4 authors.
Funding
Abstract
We formulate a stylized structural model of health, wealth accumulation and retirement decisions building on the human capital framework of health and derive analytic solutions for the time paths of consumption, health, health investment, savings and retirement. We argue that the literature has been unnecessarily restrictive in assuming that health is always at the 'optimal' health level. Exploring the properties of corner solutions, we find that advances in population health decrease the retirement age, whereas at the same time, individuals retire when their health has deteriorated. This potentially explains why retirees point to deteriorating health as an important reason for early retirement, whereas retirement ages have continued to fall in the developed world, despite continued improvements in population health and mortality. In our model, workers with higher human capital invest more in health and, because they stay healthier, retire later than those with lower human capital whose health deteriorates faster.
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