The Effect of Work Disability on the Intention to Retire of Older Workers

Danilo Cavapozzi, Chiara Dal Bianco
2018 Social Science Research Network  
In this paper, w e analyze the effect of w ork disability on the desire to retire as soon as possible of older w orkers. W e exploit objective health indicators and anchoring vignettes to develop w ork disability m easures enhancing the com parability across individuals of w ork disability selfassessm ents. O ur results show that, even once controlling for individual fixed-effects, individuals experiencing w ork lim iting health problem s are found to have a stronger propensity to retire. T he
more » ... ty to retire. T he role of w ork disability in determ ining retirem ent intentions varies w ith earnings and job characteristics. Abstract In this paper, we analyze the effect of work disability on the desire to retire as soon as possible of older workers. We exploit objective health indicators and anchoring vignettes to develop work disability measures enhancing the comparability across individuals of work disability self-assessments. Our results show that, even once controlling for individual fixed-effects, individuals experiencing work limiting health problems are found to have a stronger propensity to retire. The role of work disability in determining retirement intentions varies with earnings and job characteristics.
doi:10.2139/ssrn.3290452 fatcat:xuo6bvrh4vbrfkmdw2wysjp65m