Monday, 1 October 2012

Retirement is bad for your health

In the past months, I've been working on a paper on the impact of retirement on health. The academic version has now been relased as a Working Paper at the Research Institute of Industrial Economics. In general, I find negative medium- to long-term effects of being retired and spending longer time in retirement on various health metrics. The short-term effects, however, differ entirely and might even be positive.

The policy implication is that reforms incentivising people to work longer may be very beneficial indeed - they can make pension systems solvent, decrease expenditure on health care among the elderly, as well as improve people's health. Win, win, win.

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