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The effect on mental health of retiring during the economic crisis

Author

Listed:
  • Liudmila Antonova

    (Department of Economics, University of Venice C� Foscari)

  • Michele Belloni

    (Department of Economics, University of Venice C� Foscari)

  • Elena Meschi

    (Department of Economics, University of Venice C� Foscari)

  • Giacomo Pasini

    (Department of Economics, University of Venice C� Foscari)

Abstract
This paper investigates the causal impact of retirement on late life depression, a growing concern for public health as major depressive disorders are the second leading cause of disability. We shed light on the role of economic conditions in shaping the effect of retirement on mental health by exploiting the time and regional variation in the severity of the economic crisis across ten European countries over the 2004-2013 period. We use data from four waves of the Survey of Health, Ageing and Retirement in Europe (SHARE) and address the potential endogeneity of retirement decision to mental health by applying a fixed-effect instrumental variable approach. Results indicate that retirement improves mental health of men, but not of women. This effect is stronger for those men working in regions that are severely hit by the economic crisis and in blue-collar jobs. These findings may be explained by the worsening of working conditions and the rise in job insecurity stemming from the economic downturn: In these circumstances, the exit from the labor force is perceived as a relief.

Suggested Citation

  • Liudmila Antonova & Michele Belloni & Elena Meschi & Giacomo Pasini, 2015. "The effect on mental health of retiring during the economic crisis," Working Papers 2015:10, Department of Economics, University of Venice "Ca' Foscari".
    • Handle: RePEc:ven:wpaper:2015:10
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    Cited by:

    1. Jung, Dain & Kwak, Do Won & Tang, Kam Ki & Yazbeck, Myra, 2022. "Poor Job Conditions Amplify Negative Mental Health Shocks," Labour Economics, Elsevier, vol. 79(C).
    2. Belloni, Michele & Carrino, Ludovico & Meschi, Elena, 2022. "The impact of working conditions on mental health: Novel evidence from the UK," Labour Economics, Elsevier, vol. 76(C).
    3. Manuel Serrano‐Alarcón & Chiara Ardito & Roberto Leombruni & Alexander Kentikelenis & Angelo d’Errico & Anna Odone & Giuseppe Costa & David Stuckler & IWGRH, 2023. "Health and labor market effects of an unanticipated rise in retirement age. Evidence from the 2012 Italian pension reform," Health Economics, John Wiley & Sons, Ltd., vol. 32(12), pages 2745-2767, December.
    4. Antoine Bozio & Clémentine Garrouste & Elsa Perdrix, 2021. "Impact of later retirement on mortality: Evidence from France," Health Economics, John Wiley & Sons, Ltd., vol. 30(5), pages 1178-1199, May.
    5. Mattia Filomena & Matteo Picchio, 2023. "Retirement and health outcomes in a meta‐analytical framework," Journal of Economic Surveys, Wiley Blackwell, vol. 37(4), pages 1120-1155, September.
    6. Matteo Picchio & Jan C. van Ours, 2020. "Mental Health Effects of Retirement," De Economist, Springer, vol. 168(3), pages 419-452, September.
    7. Bertoni, Marco & Brunello, Giorgio & Da Re, Filippo, 2023. "Pension reforms, longer working horizons and depression. Does the risk of automation matter?," Labour Economics, Elsevier, vol. 85(C).
    8. Salm, Martin & Siflinger, Bettina & Xie, Mingjia, 2021. "The Effect of Retirement on Mental Health: Indirect Treatment Effects and Causal Mediation," Other publications TiSEM e28efa7f-8219-437c-a26d-2, Tilburg University, School of Economics and Management.
    9. Kuusi, T. & Martikainen, P. & Valkonen, T., 2020. "The influence of old-age retirement on health: Causal evidence from the Finnish register data," The Journal of the Economics of Ageing, Elsevier, vol. 17(C).
    10. Jan C. van Ours, 2022. "How Retirement Affects Mental Health, Cognitive Skills and Mortality; An Overview of Recent Empirical Evidence," De Economist, Springer, vol. 170(3), pages 375-400, August.
    11. Ludovico Carrino & Karen Glaser & Mauricio Avendano, 2020. "Later retirement, job strain, and health: Evidence from the new State Pension age in the United Kingdom," Health Economics, John Wiley & Sons, Ltd., vol. 29(8), pages 891-912, August.
    12. Ludovico Carrino & Vahé Nafilyan & Mauricio Avendano, 2023. "Should I Care or Should I Work? The Impact of Work on Informal Care," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 42(2), pages 424-455, March.
    13. Bertoni, Marco & Brunello, Giorgio, 2017. "Pappa Ante Portas: The effect of the husband's retirement on the wife's mental health in Japan," Social Science & Medicine, Elsevier, vol. 175(C), pages 135-142.
    14. Carrino, Ludovico & Glaser, Karen & Avendano, Mauricio, 2018. "Later Pension, Poorer Health? Evidence from the New State Pension Age in the UK," MPRA Paper 87575, University Library of Munich, Germany.
    15. Mingming Xu & Benjamin Bittschi, 2022. "Does the abolition of copayment increase ambulatory care utilization?: a quasi-experimental study in Germany," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 23(8), pages 1319-1328, November.
    16. Dino Rizzi & Carlo Simionato & Francesca Zantomio, 2019. "Older People Health and Access to Healthcare: A Retrospective Look at Inequality Dynamics over the Past Decade," Politica economica, Società editrice il Mulino, issue 3, pages 335-366.
    17. Yuxi Wang & Giovanni Fattore, 2020. "The impact of the great economic crisis on mental health care in Italy," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 21(8), pages 1259-1272, November.
    18. Johannes Geyer & Mara Barschkett & Peter Haan & Anna Hammerschmid, 2023. "The effects of an increase in the retirement age on health care costs: evidence from administrative data," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 24(7), pages 1101-1120, September.
    19. Barschkett, Mara & Geyer, Johannes & Haan, Peter & Hammerschmid, Anna, 2022. "The effects of an increase in the retirement age on health — Evidence from administrative data," The Journal of the Economics of Ageing, Elsevier, vol. 23(C).
    20. Lei, Xiaoyan & Liu, Hong, 2018. "Gender difference in the impact of retirement on cognitive abilities: Evidence from urban China," Journal of Comparative Economics, Elsevier, vol. 46(4), pages 1425-1446.
    21. Mizuochi, Masaaki, 2024. "The health consequences of returning to work after retirement: Evidence from a Japanese longitudinal survey," Economics & Human Biology, Elsevier, vol. 52(C).
    22. Carrino, L.; & Nafilyan, V.; & Avendaño Pabon, M.;, 2019. "Should I Care or Should I Work? The Impact of Working in Older Age on Caregiving," Health, Econometrics and Data Group (HEDG) Working Papers 19/23, HEDG, c/o Department of Economics, University of York.
    23. Danilo Cavapozzi & Chiara Dal Bianco, 2020. "Does retirement decrease the familiarity with ICT of older individuals?," Working Papers 2020:01, Department of Economics, University of Venice "Ca' Foscari".
    24. Dain Jung & Do Won Kwak & Kam Ki Tang & Myra Yazbeck, 2021. "How Do Job Conditions Amplify the Impacts of Mental Health Shocks?," Discussion Papers Series 647, School of Economics, University of Queensland, Australia.
    25. Angelo d’Errico & Chiara Ardito & Roberto Leombruni & Fulvio Ricceri & Giuseppe Costa & Carlotta Sacerdote & Anna Odone, 2022. "Working Conditions and Health Among Italian Ageing Workers," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 162(3), pages 1043-1067, August.

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    More about this item

    Keywords

    depression; stress; retirement; crisis;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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