Health and Retirement in Europe

Hagan, R. D.; Jones, Andrew M.; Rice, Nigel

doi:10.3390/ijerph6102676

Cited by 34 publications

(29 citation statements)

References 40 publications

(67 reference statements)

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“…Lindeboom and van Doorslaer (2004) found some evidence of reporting bias by age and gender, but not income, using Canadian data and the constructed McMaster Health Utility Index as their more objective measure. Hagan et al (2006) undertake a similar exercise focusing on the effect of self-reported health on mortality using British data.…”

Section: Introductionmentioning

confidence: 99%

Comparing subjective and objective measures of health: Evidence from hypertension for the income/health gradient

Johnston

Propper

Shields

2009

Journal of Health Economics

247

216

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Economists rely heavily on self-reported measures of health status to examine the relationship between income and health. In this paper we directly compare survey responses to a self-reported measure of health that is commonly available in nationally-representative individual and household surveys, with objective measures of the same health condition. Our particular focus is on hypertension, which is the most prevalent health condition in Western countries. Using data from the Health Survey for England, we find that there is a substantial difference in the percentage of adult survey respondents reporting that they have hypertension as a chronic health condition compared to that from repeated measurements by a trained nurse. Around 85% of individuals measured as having hypertension do not report having it as a chronic illness. Importantly, we find no evidence of an income/health gradient using self-reported hypertension, but a large (about 14 times the size) gradient when using objectively measured hypertension. We also find that the probability of false negative reporting, that is an individual not reporting to have chronic hypertension when in fact they have it, is significantly higher for individuals living in low income households. Given the wide use of such self-reported chronic health conditions in applied research, and the asymptomatic nature of many major illnesses such as hypertension, diabetes, heart dis ease and cancer at moderate and sometimes very elevated levels, we show that using commonly available self-reported chronic health measures is likely to lead to an underestimate of true income -related inequalities in health. This has important implications for policy advice.

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Section: Introductionmentioning

confidence: 99%

Comparing subjective and objective measures of health: Evidence from hypertension for the income/health gradient

Johnston

Propper

Shields

2009

Journal of Health Economics

247

216

View full text Add to dashboard Cite

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“…If given the opportunity, affected individuals may opt for early retirement, part-time employment, or a prolonged sick-leave, either because they objectively cannot perform daily routines or they perceive their health status to be too weak to work. These dynamics have been strongly confirmed in the empirical literature on the effects of sudden and graduated declines in health on the probability to be unemployed, to be inactive, or to retire (Rice et al, 2007;Hagan et al, 2006;Disney et al, 2006;García-Gómez and López-Nicolás, 2006;Wing Han Au et al, 2005;Riphahn, 1999;Bound et al, 1999).…”

mentioning

confidence: 78%

Discrete Heterogeneity in the Impact of Health Shocks on Labour Market Outcomes

Schurer

2008

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract Empirical evidence from the psychology literature suggests that reactions towards health shocks depend strongly on the personality trait of locus of control, which is usually unobservable to the analyst. In this paper, the role of this discrete heterogeneity in shaping the effects of health shocks on labour supply is theoretically modelled by adopting the Grossman (1972) model. Using German longitudinal data, the predictions of the theoretical model are tested with a latent class binary choice model and an alternative identification strategy. A robust result across both specifications for various definitions of locus of control, health shocks and labour market outcomes is that internals have a smaller probability of leaving the labour market after experiencing a health shock than externals. Terms of use: Documents inJEL Classification: I12, D01, C25

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“…Hagan et al found that health exerted a significant and strong impact on the probability of retiring, all else being equal. 45 They used data from nine countries (Belgium, Denmark, France, Greece, Ireland, Italy, Portugal, Spain and the UK) covered by the ECHP for 1994 through 2001, with a sample of individuals aged 50 to 64 and either employed or self-employed in 1994. They used alternative definitions of retirement (self-reported or * An important factor in the decision to retire is an individual's financial incentives, determined largely by the characteristics of the country's pension and social protection system.…”

Section: Health Matters For Retirement (At the Individual Level)mentioning

confidence: 99%

“…Pooling data from all countries revealed that a medium health shock would, all else being equal, increase the probability of retiring by 50 percent, while a large one would increase it by 106 percent ( Table 1). 45 Hagan et al also looked at how the impact of health shocks and health stocks varied among countries, variation that may be associated with the incentives for retirement embedded in a country's social security and tax systems. Despite the cross-country variation, the fundamental results from the pooled analysis presented above did hold through.…”

Section: Health Matters For Retirement (At the Individual Level)mentioning

confidence: 99%

“…38,46 In contrast to the ECHP data used by Hagan and colleagues, 45 the SHARE data used in this study covered only one point in time. *5 On the other hand, SHARE focuses on those over 50 and has a more extensive collection of health indicators, many of them objective and not subject to the measurement bias commonly associated with the standard self-reported health variables.…”

Section: Health Matters For Retirement (At the Individual Level)mentioning

confidence: 99%

See 1 more Smart Citation

Is there a Wealth Dividend of Aging Societies?

2010

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Apocalyptic views on the social, economic and health consequences of aging abound. This review examines the potential upside of aging, in particular from a public health perspective. First, we review the evidence on whether there is healthy aging in the sense of a compression of morbidity: people spending fewer of the life years gained in poor health. The evidence turns out to be decidedly mixed, depending on the country, the data and perhaps most critically on the definition of "health" considered. Second, we explore the potential and actual labour market impact a healthy elderly population could make. We find considerable support for the notion that if only effective retirement age was raised to reflect past and future increases in life expectancy, then the result could be a significant increase in elderly labour force participation rates. Moreover, a significant share of the already retired elderly population is in good health, indicating a potential unused capacity for the labour market. Third, we turn to the impact of improved health (especially among the elderly) on healthcare expenditures. In general, evidence does not support the optimistic expectation that improved health will mitigate or even reverse the trend of increasing health expenditures. Even if better health may, in some circumstances, lead to lower healthcare spending, other cost drivers, in particular technological advances, will more than outweigh any such expenditure-reducing effect. On the other hand, there is not much support for the hypothesis that better health by itself is a major cost driver. Policy can make a difference in facilitating the realisation of the potential benefits of a healthy aging scenario. This does, however, require a coordinated approach between social, economic and health policy and will enter into policy arenas in which the political costs of reform, despite their expected societal benefits, may become a bottleneck that is hard to overcome.

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Health and Retirement in Europe

Cited by 34 publications

References 40 publications

Comparing subjective and objective measures of health: Evidence from hypertension for the income/health gradient

Comparing subjective and objective measures of health: Evidence from hypertension for the income/health gradient

Discrete Heterogeneity in the Impact of Health Shocks on Labour Market Outcomes

Is there a Wealth Dividend of Aging Societies?

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