NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Health Capacity to Work at Older Ages in Denmark

Paul Bingley, Nabanita Datta Gupta, Peder Pedersen

NBER Working Paper No. 22018
Issued in February 2016
NBER Program(s):Aging

Longevity is increasing and many people are spending a greater proportion of their lives reliant on pensions to support consumption. In response to this, several countries have mandated delays to age of first entitlement to pension benefits in order to reduce incentives to retire early. However, it is unknown to what extent older individuals have the health capacity to sustain the longer working lives that delayed pension benefits may encourage. We estimate the health capacity to work longer in Denmark by comparing how much older individuals work today with how much those with similar mortality rates worked in the past, and how much younger individuals today with similar self-assessed health work. We find substantial health capacity for longer working lives among those currently aged 55 and above. We also find significant heterogeneity by education and gender. Those with a high school degree have the greatest additional work capacity, women have more additional capacity than men, especially women with a college degree.

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Document Object Identifier (DOI): 10.3386/w22018

Published: Health Capacity to Work at Older Ages in Denmark, Paul Bingley, Nabanita Datta Gupta, Peder J. Pedersen. in Social Security Programs and Retirement Around the World: The Capacity to Work at Older Ages, Wise. 2017

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