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Contribution Details

Type Working Paper
Scope Discipline-based scholarship
Title Fatal attraction? Extended unemployment benefits, labor force exits, and mortality
Organization Unit
  • Andreas Kuhn
  • Stefan Staubli
  • Jean-Philippe Wuellrich
  • Josef Zweimüller
  • English
Institution National Bureau of Economic Research
Series Name NBER Working Papers
Number 25124
Number of Pages 42
Date 2018
Abstract Text 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.
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Digital Object Identifier 10.3386/w25124
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Additional Information Auch publiziert als CEPR Discussion Paper No. DP13217