Hostname: page-component-848d4c4894-wg55d Total loading time: 0 Render date: 2024-06-08T19:48:59.036Z Has data issue: false hasContentIssue false
  • English
  • Français

The effect of retirement on the health of elderly people: evidence from China

Published online by Cambridge University Press:  29 July 2021

Zengwen Wang ,
Yaofeng Chen  and
Yucheng Chen Open the ORCID record for Yucheng Chen [Opens in a new window]
Zengwen Wang
Affiliation:
The Center for Social Security Studies of Wuhan University, Wuhan, China
Yaofeng Chen
Affiliation:
The Center for Social Security Studies of Wuhan University, Wuhan, China
Yucheng Chen*
Affiliation:
The Center for Social Security Studies of Wuhan University, Wuhan, China
*
*Corresponding author. Email: cyc_whu18@163.com
Get access Rights & Permissions [Opens in a new window]

Abstract

The low retirement age has imposed a heavy economic burden on the pension system in China, leading to an ongoing debate about raising the retirement age. To understand the potential costs of raising the retirement age, we need to consider the health effects of retirement policies. Using the China Health and Retirement Longitudinal Study (CHARLS) from 2011 to 2015, this study employs the statutory retirement age as the exogenous variable of retirement and applies a fuzzy regression discontinuity design (RDD) to examine the effect of retirement on the health of Chinese elderly people. We find that retirement has a non-significant effect on health with respect to a series of health indicators, different bandwidths of RDD and sub-sample groups. The finding is also robust across different retirement definitions and retirement ages. This result may be attributed to the minimal changes in income and lifestyles before and after retirement. Moreover, the findings of this study provide important evidence for policy makers to increase retirement ages in China.

Keywords

retirementhealthfuzzy regression discontinuity designChina
Type
Article
Information
Ageing & Society , Volume 43 , Issue 6 , June 2023 , pp. 1284 - 1309
Copyright
Copyright © The Author(s), 2021. Published by Cambridge University Press

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Ayyagari, P (2016) The impact of retirement on smoking behavior. Eastern Economic Journal 42, 270–287.CrossRefGoogle Scholar
Belloni, M, Meschi, E and Pasini, G (2016) The effect on mental health of retiring during the economic crisis. Health Economics 25, 126–140.CrossRefGoogle ScholarPubMed
Bloemen, H, Hochguertel, S and Zweerink, J (2017) The causal effect of retirement on mortality: evidence from targeted incentives to retire early. Health Economics 26, 204–218.CrossRefGoogle ScholarPubMed
Charles, KK (2004) Is retirement depressing?: Labor force inactivity and psychological well-being in later life. Research in Labor Economics 23, 269–299.CrossRefGoogle Scholar
Coe, NB and Zamarro, G (2011) Retirement effects on health in Europe. Journal of Health Economics 30, 77–86.CrossRefGoogle ScholarPubMed
Dave, D, Rashad, I and Spasojevic, J (2008) The effects of retirement on physical and mental health outcomes. Southern Economic Journal 75, 497–523.CrossRefGoogle Scholar
Deng, H and He, X (2016) The effects of retirement on physical and mental health outcomes in males: based on the empirical evidences of regression discontinuity design. Population & Economics 6, 82–91.Google Scholar
Dong, XY and Zang, WB (2017) The effect of retirement on the health of middle-aged and elderly people. Population Journal 39, 76–88.Google Scholar
Eibich, P (2015) Understanding the effect of retirement on health: mechanisms and heterogeneity. Journal of Health Economics 43, 1–12.CrossRefGoogle ScholarPubMed
Fé, E and Hollingsworth, B (2016) Short- and long-run estimates of the local effects of retirement on health. Journal of the Royal Statistical Society Series A (Statistics in Society) 4, 1051–1067.CrossRefGoogle Scholar
Galama, T, Kapteyn, A, Fonseca, R and Michaud, PC (2013) A health production model with endogenous retirement. Health Economics 22, 883–902.CrossRefGoogle ScholarPubMed
Grossman, M (1972) On the concept of health capital and the demand for health. Journal of Political Economy 80, 223–255.CrossRefGoogle Scholar
Hao, W and Young, D (2000) Drinking patterns and problems in China. Journal of Substance Use 5, 71–78.CrossRefGoogle Scholar
Hashimoto, H (2013) Health consequences of transitioning to retirement and social participation: results based on JSTAR panel data. Research Institute of Economy, Trade and Industry, Tokyo, RIETI Discussion Paper Series 13-E-078.Google Scholar
Horner, EM (2014) Subjective well-being and retirement: analysis and policy recommendations. Journal of Happiness Studies 15, 125–144.CrossRefGoogle Scholar
Insler, M (2014) The health consequences of retirement. Journal of Human Resources 49, 195–233.CrossRefGoogle Scholar
Jiang, L (2011) Comparison of the difference between Chinese and Western drinking culture. Asian Social Science 7, 251–257.CrossRefGoogle Scholar
Johnston, DW and Lee, WS (2009) Retiring to the good life? The short-term effects of retirement on health. Economics Letters 103, 8–11.CrossRefGoogle Scholar
Kerkhofs, M and Lindeboom, M (1997) Age related health dynamics and changes in labour market status. Health Economics 6, 407–423.3.0.CO;2-N>CrossRefGoogle ScholarPubMed
Kuhn, M, Wrzaczek, S, Prskawetz, A and Feichtinger, G (2015) Optimal choice of health and retirement in a life-cycle model. Journal of Economic Theory 158, 186–212.CrossRefGoogle Scholar
Latif, E (2011) The impact of retirement on psychological well-being in Canada. Journal of Socio-economics 40, 373–380.CrossRefGoogle Scholar
Lee, DS and Lemieux, T (2010) Regression discontinuity designs in economics. Journal of Economic Literature 48, 281–355.CrossRefGoogle Scholar
Lei, XY and Liu, H (2018) Gender difference in the impact of retirement on cognitive abilities: evidence from urban China. Journal of Comparative Economics 46, 1425–1446.CrossRefGoogle Scholar
Lei, XY, Tan, L and Zhao, YX (2010) Does retirement affect health? China Economic Quarterly 9, 1539–1558.Google Scholar
Liu, SL and Lang, XJ (2017) The impact of retirement on physical and mental health among Chinese elderly. Population Research 41, 74–88.Google Scholar
McCrary, J (2008) Manipulation of the running variable in the regression discontinuity design: a density test. Journal of Econometrics 142, 698–714.CrossRefGoogle Scholar
Midanik, LT, Soghikian, K, Ransom, LJ and Tekawa, IS (1995) The effect of retirement on mental health and health behaviors: the Kaiser Permanente Retirement Study. Journals of Gerontology: Psychological Sciences and Social Sciences 50B, S59–S61.CrossRefGoogle Scholar
Neuman, K (2008) Quit your job and get healthier? The effect of retirement on health. Journal of Labor Research 29, 177–201.CrossRefGoogle Scholar
Shai, O (2018) Is retirement good for men's health? Evidence using a change in the retirement age in Israel. Journal of Health Economics 57, 15–30.CrossRefGoogle ScholarPubMed
Shigeoka, H (2014) The effect of patient cost sharing on utilization, health, and risk protection. American Economic Review 104, 2152–2184.CrossRefGoogle Scholar
Su, CH and Li, S (2019) Lifestyle and time use: the effect of retirement on health. Journal of Shandong University (Philosophy and Social Sciences) 2, 86–97.Google Scholar
van der Heide, I, van Rijn, RM, Robroek, SJW, Burdorf, A and Proper, KI (2013) Is retirement good for your health? A systematic review of longitudinal studies. BMC Public Health 13, 1–11.CrossRefGoogle ScholarPubMed
Wang, CT and Zang, PY (2016) An empirical analysis of the effect of retirement on health in China. Population and Development 22, 11–18.Google Scholar
Yang, YN and Xie, YZ (2014) The effect of differing retirement age on youth unemployment rate: empirical evidence from 27 OECD countries. Chinese Journal of Population Science 4, 46–57.Google Scholar
Ye, JZ (2018) Relationship between retirement, living habit and health: based on harmonized CHARLS data. Population & Economics 2, 80–90.Google Scholar
Zhang, ML, Brooks, MR, Ding, D, Ding, H, He, H, Lu, J and Mano, R (2018) China's High Savings: Drivers, Prospects, and Policies. Available at https://xueshu.baidu.com/usercenter/paper/show?paperid=1e590020hx6s0vr0a07r0gj0qy299568&site=xueshu_se&hitarticle=1.Google Scholar
Zhang, Y, Salm, M and van Soest, A (2018) The effect of retirement on healthcare utilization: evidence from China. Journal of Health Economics 62, 165–177.CrossRefGoogle ScholarPubMed
Zou, H, Luan, BJ, Peng, ZC and Yu, KZ (2018) Does retirement change the health behavior of urban older adults? Evidence based on regression discontinuity design of alcohol and tobacco consumption. Nankai Economic Studies 6, 112–128.Google Scholar