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Health Shocks and the Hazard Rate of Early Retirement in the ECHP

Summary

In this paper we use discrete-time proportional hazard models with internationally comparable longitudinal data from the full eight waves of the European Community Household Panel (ECHP) to study the relationship between retirement, health levels and health shocks in nine European countries. The results show a consistency of effect with only small variation in magnitude both for latent health stock variables as well as the subjective SAH measures. This is compatible with previous findings that declining health is associated with an increased probability of retirement. Additionally a three-level graduated acute health shock variable was created, that shows evidence of a gradient in the effect.

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Acknowledgements: The European Community Household Panel Users’ Database, version of December 2003, was supplied by Eurostat. We are grateful to Cristina Hernández Quevedo for her assistance in preparing the version of the ECHP-UDB that was used in this paper. Material from this paper was presented at the Swiss Society of Economics and Statistics (SSES), Lausanne, March 2008.

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Open Access This article is distributed under the terms of the Creative Commons Attribution 2.0 International License ( https://creativecommons.org/licenses/by/2.0 ), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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Hagan, R., Jones, A.M. & Rice, N. Health Shocks and the Hazard Rate of Early Retirement in the ECHP. Swiss J Economics Statistics 144, 323–335 (2008). https://doi.org/10.1007/BF03399257

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  • DOI: https://doi.org/10.1007/BF03399257

JEL-Classification

  • H55
  • I12
  • J26

Keywords

  • Retirement
  • Health
  • ECHP
  • European Union