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Is retirement depressing? : labor force inactivity and psychological well-being in later life

Author: Kerwin Kofi Charles; National Bureau of Economic Research.
Publisher: Cambridge, MA. : National Bureau of Economic Research, ©2002.
Series: Working paper series (National Bureau of Economic Research), no. 9033.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
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  Read more...
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Details

Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Kerwin Kofi Charles; National Bureau of Economic Research.
OCLC Number: 50502831
Notes: "July 2002."
Description: 1 online resource (23, [13] pages) : illustrations.
Series Title: Working paper series (National Bureau of Economic Research), no. 9033.
Other Titles: Labor force inactivity and psychological well-being in later life
Responsibility: Kerwin Kofi Charles.

Abstract:

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.

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