To read the full version of this content please select one of the options below:

IS RETIREMENT DEPRESSING?: LABOR FORCE INACTIVITY AND PSYCHOLOGICAL WELL-BEING IN LATER LIFE

Accounting for Worker Well-Being

ISBN: 978-0-76231-110-1, eISBN: 978-1-84950-273-3

ISSN: 0147-9121

Publication date: 14 July 2004

Abstract

This paper assesses how retirement – defined as permanent labor force non-participation in a man’s mature years – affects psychological welfare. The raw correlation between retirement and well-being is negative. But this does not imply causation. In particular, people with idiosyncratically low well-being, or people facing transitory shocks which adversely affect well-being might disproportionately select into retirement. Discontinuous retirement incentives in the Social Security System, and changes in laws affecting mandatory retirement and Social Security benefits allows the exogenous effect of retirement on happiness to be estimated. The paper finds that the direct effect of retirement on well-being is positive once the fact that retirement and well-being are simultaneously determined is accounted for.

Citation

Kofi Charles, K. (2004), "IS RETIREMENT DEPRESSING?: LABOR FORCE INACTIVITY AND PSYCHOLOGICAL WELL-BEING IN LATER LIFE", Polachek, S.W. (Ed.) Accounting for Worker Well-Being (Research in Labor Economics, Vol. 23), Emerald Group Publishing Limited, Bingley, pp. 269-299. https://doi.org/10.1016/S0147-9121(04)23008-4

Publisher

:

Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited