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Smoking Behaviour and Early Retirement Due to Chronic Disability

Author

Listed:
  • Bengtsson, Tommy

    (Lund University)

  • Nilsson, Anton

    (Lund University)

Abstract
This paper considers the long-term effects of smoking on disability retirement. Exploiting population-wide registry data from Sweden, we contribute to the literature by accounting for a much broader range of potential confounders. In particular, by the use of sibling and twin fixed effects, we account for all unobserved heterogeneity in childhood environment and family characteristics. Moreover, we are able to control for detailed information on socioeconomic status, marital status and health. We also contribute by comparing effects on different diagnoses for which disability pension was granted, thus shedding some light on the biological mechanisms linking smoking to disability retirement. We demonstrate a strong association between smoking and disability retirement. Among individuals aged 50-64, smokers have a six percentage point higher probability of receiving (full) disability pension. However, while the relationship remains significant when accounting for confounders such as family environment, the size of the effect is much attenuated. Effects are concentrated to mental and musculoskeletal conditions, but effects on neoplasms, nervous system, eye and circulatory diagnoses are also found. The results are largely driven by health problems severe enough to merit hospitalization, and there is no evidence of a role played by financial incentives.

Suggested Citation

  • Bengtsson, Tommy & Nilsson, Anton, 2016. "Smoking Behaviour and Early Retirement Due to Chronic Disability," IZA Discussion Papers 9881, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9881
    as

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    References listed on IDEAS

    as
    1. van Ours, Jan C., 2002. "A pint a day raises a man's pay; but smoking blows that gain away," IZA Discussion Papers 473, Institute of Labor Economics (IZA).
    2. van Ours, Jan C., 2004. "A pint a day raises a man's pay; but smoking blows that gain away," Journal of Health Economics, Elsevier, vol. 23(5), pages 863-886, September.
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    5. P. Midlöv & S. Calling & J. Sundquist & K. Sundquist & S. Johansson, 2014. "The longitudinal age and birth cohort trends of smoking in Sweden: a 24-year follow-up study," International Journal of Public Health, Springer;Swiss School of Public Health (SSPH+), vol. 59(2), pages 243-250, April.
    6. Tibor Baška & Charles Warren & Henrieta Hudečková & Róbert Ochaba & Peter Šťastný & Veronica Lea & Juliette Lee, 2010. "The role of family background on cigarette smoking among adolescent school children in Slovakia: findings from the 2007 Slovakia Global Youth Tobacco Survey," International Journal of Public Health, Springer;Swiss School of Public Health (SSPH+), vol. 55(6), pages 591-597, December.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    siblings; specific conditions; disability retirement; smoking; twins;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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