An Analysis of the Health and Retirement Status of the Elderly

Robin C. Sickles, Paul J. Taubman

NBER Working Paper No. 1459
Issued in September 1984
NBER Program(s):Health Economics

in this paper we specify and estimate a structural limited dependent variable model with which we study both the health and retirement status of the elderly. Standard linear estimators, which assume that these variable sare continuous, are not appropriate and categorical estimation techniques are preferred. Our model differs from previous work in that we have longitudinal data and random effects that are correlated over time for different individuals. The problem is made more complicated because there is sample truncation, which could potentially bias coefficient estimates, since approximately twenty percent of the individuals in our sample die. We outline the full information maximum likelihood estimator for such a model and implement it in our empirical analysis. With our structural estimates we analyze, among other things, the degree to which endogeneously determined health status affects the probability of retirement and how changes in social security benefits and eligibility for transfer payments modify both healthiness and the demand for leisure.

download in pdf format
   (268 K)

download in djvu format
   (200 K)

email paper

The NBER Bulletin on Aging and Health provides summaries of publications like this.  You can sign up to receive the NBER Bulletin on Aging and Health by email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w1459

Published: Sickles, Robin C. and Paul J. Taubman. "An Analysis of the Health and Retirnt Status of the Elderly," Econometrica, Vol. 54, No. 6, Nov. 1986, pp. 133 9-1356. citation courtesy of

Users who downloaded this paper also downloaded* these:
Dwyer and Mitchell w6503 Health Problems as Determinants of Retirement: Are Self-Rated Measures Endogenous?
Dave, Kelly, and Spasojevic w12123 The Effects of Retirement on Physical and Mental Health Outcomes
McGarry w9317 Health and Retirement: Do Changes in Health Affect Retirement Expectations?
Hausman and Wise Social Security, Health Status, and Retirement
Bound w2997 Self-Reported vs. Objective Measures of Health in Retirement Models
NBER Videos

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email:

Contact Us