Fatal Attraction? Extended Unemployment Benefits, Labor Force Exits, and Mortality
We estimate the causal effect of permanent and premature exits from the labor force on mortality. To overcome the problem of negative health selection into early retirement, we exploit a policy change in unemployment insurance rules in Austria that allowed workers in eligible regions to exit the labor force 3 years earlier compared to workers in non-eligible regions. Using administrative data with precise information on mortality and retirement, we find that the policy change induced eligible workers to exit the labor force significantly earlier. Instrumental variable estimation results show that for men retiring one year earlier causes a 6.8% increase in the risk of premature death and 0.2 years reduction in the age at death, but has no significant effect for women.
We thank Michael Anderson, Joshua Angrist, David Autor, Raj Chetty, Janet Currie, David Dorn, Christian Dustmann, Marty Feldstein, Hans-Martin von Gaudecker, Pieter Gautier, Bas van der Klaauw, Rafael Lalive, Attila Lindner, Lucija Muehlenbachs, Maarten Lindeboom, Erik Plug, Alois Stutzer, Uwe Sunde, participants of the 2018 NBER Trans-Atlantic Public Economics Seminar and seminar participants in Amsterdam, Basel, Bern, Engelberg, Linz, Madrid, MIT, St.Gallen and Zurich for helpful comments and suggestions. Financial support from the Austrian Science Fund (S 10304-G16) and the Swiss National Science Foundation (grant no. PBZHP1-133428) is gratefully acknowledged. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
- For blue-collar male workers in Austria, an extra year of early retirement, induced by a policy change, was associated with an...
Andreas Kuhn & Stefan Staubli & Jean-Philippe Wuellrich & Josef Zweimüller, 2019. "Fatal attraction? Extended unemployment benefits, labor force exits, and mortality," Journal of Public Economics, .
Fatal Attraction? Extended Unemployment Benefits, Labor Force Exits, and Mortality, Andreas Kuhn, Stefan Staubli, Jean-Philippe Wuellrich, Josef Zweimüller. in Inequality and Public Policy, Trans-Atlantic Public Economics Seminar 2018, Hoynes, Landais, and Spinnewijn. 2020