Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/71542 
Year of Publication: 
2003
Series/Report no.: 
IFS Working Papers No. 03/02
Publisher: 
Institute for Fiscal Studies (IFS), London
Abstract: 
We examine the role of ill-health in retirement decisions in Britain, using the first eight waves of the British Household Panel Survey (1991-98). As self-reported health status is likely to be endogenous to the retirement decision, we instrument self-reported health by a constructed Ѩealth stock' measure using a set of health indicator variables and personal characteristics, as suggested by Bound et al (1999). Using both linear and non-linear fixed effects estimators, we show that adverse individual health shocks are an important predictor of individual retirement behaviour. We compare the impact of our constructed health measure on economic activity with that arising from the use of other health variables in the data set. We also examine the impact of the 1995 reform of disability benefits on the retirement decision.
Subjects: 
Ill health Retirement Disability insurance
JEL: 
H55
I12
J26
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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