Ill health and retirement in Britain: A panel data-based analysis
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We examine the effect of ill health on retirement decisions in Britain, using the British Household Panel Survey (1991-1998). As self-reported health status is likely to be endogenous to the retirement decision, we instrument self-reported health by a constructed 'health stock' measure using a set of health indicator variables and personal characteristics, as suggested by Bound et al. (Bound, J., Schoenbaum, M., Stinebrickner, T.M., Waidmann, M., 1999. The dynamic effects of health on the labor force transitions of older workers. Labour Economics 6, 179-202). Using a range of econometric techniques, we show that adverse shocks to individual health stocks predict individual retirement behaviour among workers aged from 50 until state pension age. We compare responses of economic activity to constructed health measures with that arising using direct indicators of functional limitations and specific health problems. We also examine the dynamics of health shocks and whether adverse and positive health shocks have symmetric effects on transitions in and out of economic activity.
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Higher wealth encourages individuals to retire earlier.
“As has been demonstrated in a number of studies in the past (Disney et al. 2006; Haan and Myck 2009), health is confirmed to have a strong effect on the decision to leave employment, and higher wealth encourages individuals to retire earlier.”
From Living longer, working longer: the need for a comprehensive approach to labour market reform in response to demographic changes (2015) · cites this paper as Disney et al. 2006
Health has a strong effect on the decision to leave employment.
“As has been demonstrated in a number of studies in the past (Disney et al. 2006; Haan and Myck 2009), health is confirmed to have a strong effect on the decision to leave employment, and higher wealth encourages individuals to retire earlier.”
From Living longer, working longer: the need for a comprehensive approach to labour market reform in response to demographic changes (2015) · cites this paper as Disney et al. 2006
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Carmichael, F., Duberley, J. P., & Szmigin, I. T. D. (2014) · Sport in Society · doi:10.1080/17430437.2014.919261 · Cited by 26 · see citing works
Health selection operating between classes and across employment statuses
Ki, M., Sacker, A., Kelly, Y. J., & Nazroo, J. Y. (2010) · Journal of Epidemiology & Community Health · doi:10.1136/jech.2009.107995 · Cited by 25 · see citing works
Association between chronic morbidity and early retirement in Italy
Ranzi, T. L., d’Errico, A., & Costa, G. (2012) · International Archives of Occupational and Environmental Health · doi:10.1007/s00420-012-0765-5 · Cited by 25 · see citing works
Why Has Employment Recently Risen Among Older Workers in Britain?
Disney, R. F., & Hawkes, D. D. (2003) · Palgrave Macmillan UK eBooks · doi:10.1057/9780230598454_5 · Cited by 25 · see citing works
Self-citationCoile, C. (2015) · Journal of Economic Surveys · Cited by 24 · see citing works
Early Retirement Among Men in Britain and Germany: How Important is Health?
Roberts, J., Rice, N., & Jones, A. M. (2010) · The Geneva Papers on Risk and Insurance Issues and Practice · doi:10.1057/gpp.2010.24 · Cited by 24 · see citing works
Health, disability and work: patterns for the working age population
García‐Gómez, P., von Gaudecker, H., & Lindeboom, M. (2010) · International Tax and Public Finance · doi:10.1007/s10797-010-9150-z · Cited by 23 · see citing works
Local area unemployment, individual health and workforce exit: ONS Longitudinal Study
Murray, E. T., Head, J. A., Shelton, N. J., Hagger‐Johnson, G., Stansfeld, S. A., Zaninotto, P., & Stafford, M. (2016) · European Journal of Public Health · doi:10.1093/eurpub/ckw005 · Cited by 23 · see citing works
Retirement and Unexpected Health Shocks
Apouey, B., Guven, C., & Sénik, C. (2019) · Economics & Human Biology · doi:10.1016/j.ehb.2019.01.009 · Cited by 23 · see citing works
Tisch, A. (2015) · Journal for Labour Market Research · doi:10.1007/s12651-015-0186-5 · Cited by 23 · see citing works
Employment Duration and Shifts into Retirement in the EUPreprint
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Chu, W., Liao, W., Li, C., Lee, S., Tang, Y., Ho, H., & Lee, M. (2016) · Archives of Gerontology and Geriatrics · doi:10.1016/j.archger.2016.03.020 · Cited by 22 · see citing works
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- Authors
- Disney, R., Emmerson, C., & Wakefield, M.
- Affiliations
- Institute for Fiscal Studies (GB)
- Corresponding author
- Disney, Richard
- Venue
- Journal of Health Economics
- Publisher
- Elsevier BV
- Published
- 2006-07
- Volume
- 25
- Issue
- 4
- Pages
- 621-649
- ISSN
- 0167-6296 (ISSN-L)
- OpenAlex
- W2099575156
- Cited by
- 355
- References
- 36
- Citations by year
- 2026: 10 · 2025: 5 · 2024: 16 · 2023: 14 · 2022: 12 · 2021: 15 · 2020: 12 · 2019: 17 · 2018: 17 · 2017: 14 · 2016: 18 · 2015: 24 · 2014: 17 · 2013: 22 · 2012: 16
- FWCI
- 61.46
- Type
- journal article
- Language
- en
- Open access
- green
- discovery.ucl.ac.uk
- Locations
- Journal of Health Economics (publishedVersion)
- PubMed (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- UCL Discovery (University College London) (submittedVersion)
- OpenGrey (Institut de l'Information Scientifique et Technique) (submittedVersion)
- Funders
- University of Essex
- Nuffield Foundation
- Economic and Social Research Council (RES-544-28-5001)
- Topics
- Social Sciences › Demography › Retirement, Disability, and Employment
- Social Sciences › Business, Management and Accounting › Accounting › Financial Literacy, Pension, Retirement Analysis
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Labor market dynamics and wage inequality
- Keywords
- retirement, health problems, health shocks, self-reported health, older workers, labor force transitions, functional limitations, British Household Panel Survey
- MeSH terms
- Aged, Female, United Kingdom, Health Status, Humans, Male, Middle Aged, Retirement, Databases as Topic
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Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
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