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Fatal attraction? Extended unemployment benefits, labor force exits, and mortality


Kuhn, Andreas; Staubli, Stefan; Wuellrich, Jean-Philippe; Zweimüller, Josef (2018). Fatal attraction? Extended unemployment benefits, labor force exits, and mortality. NBER Working Papers 25124, National Bureau of Economic Research.

Abstract

We estimate the causal effect of permanent and premature exits from the labor force on mortality. To overcome the problem of negative health selection into early retirement, we exploit a policy change in unemployment insurance rules in Austria that allowed workers in eligible regions to exit the labor force 3 years earlier compared to workers in non-eligible regions. Using administrative data with precise information on mortality and retirement, we find that the policy change induced eligible workers to exit the labor force significantly earlier. Instrumental variable estimation results show that for men retiring one year earlier causes a 6.8% increase in the risk of premature death and 0.2 years reduction in the age at death, but has no significant effect for women.

Abstract

We estimate the causal effect of permanent and premature exits from the labor force on mortality. To overcome the problem of negative health selection into early retirement, we exploit a policy change in unemployment insurance rules in Austria that allowed workers in eligible regions to exit the labor force 3 years earlier compared to workers in non-eligible regions. Using administrative data with precise information on mortality and retirement, we find that the policy change induced eligible workers to exit the labor force significantly earlier. Instrumental variable estimation results show that for men retiring one year earlier causes a 6.8% increase in the risk of premature death and 0.2 years reduction in the age at death, but has no significant effect for women.

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Additional indexing

Item Type:Working Paper
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
JEL Classification:I10, I12, J14, J26
Language:English
Date:October 2018
Deposited On:05 Mar 2019 13:16
Last Modified:05 Mar 2019 13:29
Series Name:NBER Working Papers
Number of Pages:42
Additional Information:Auch publiziert als CEPR Discussion Paper No. DP13217
OA Status:Closed
Publisher DOI:https://doi.org/10.3386/w25124
Official URL:https://www.nber.org/papers/w25124
Related URLs:https://cepr.org/active/publications/discussion_papers/dp.php?dpno=13217

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