Occupational Retirement and Pension Reform: The Roles of Physical and Cognitive Health

Jiayi Wen ()

No 2018-12-04, Working Papers from Wang Yanan Institute for Studies in Economics (WISE), Xiamen University

Abstract: Despite increasing cognitive demands of jobs, knowledge about the role of health in retirement has centered on its physical dimensions. This paper estimates a dynamic programming model of retirement that incorporates multiple health dimensions, allowing differential effects on labor supply across occupations. Results show that the effect of cognitive health surges exponentially after age 65, and it explains a notable share of employment declines in cognitively demanding occupations. Under pension reforms, physical constraint mainly impedes manual workers from delaying retirement, whereas cognitive constraint dampens the response of clerical and professional workers. Multidimensional health thus unevenly exacerbates welfare losses across occupations.

Keywords: Cognitive Health; Physical Health; Occupation; Retirement; Public Pension (search for similar items in EconPapers)
JEL-codes: D15 H55 I10 J2 J26 (search for similar items in EconPapers)
Date: 2018-12-04, Revised 2023-05-28
New Economics Papers: this item is included in nep-age, nep-dge and nep-hea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Occupational Retirement and Pension Reform: The Roles of Physical and Cognitive Health (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:wyi:wpaper:002390

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