Academic Seminar: "Retirement: the role of endogenous subjective and objective health measures"

On October 7, KSE Professor and Senior Economist Maksym Obrizan will held the academic seminar presenting his recent research paper: “Retirement: the role of endogenous subjective and objective health measures”.

The decision to retire is often triggered by an individual’s worsening health status, which is likely to be endogenous. Unlike previous studies, which have often ignored unobserved individual heterogeneity, this paper develops a structural model of retirement that makes use of endogenous subjective and objective health measures. The model was tested in a sample of 4,624 older Americans who were part of the Health and Retirement Study (HRS) and who were not retired in 1998. Overall, there is stronger evidence for the endogeneity of subjective self-rated health than there is for the presence of objective limitations (measured in terms of Activities of Daily Living and Instrumental Activities of Daily Living).

In addition, health was found to be a more important factor in retirement decisions than either income or wealth. The availability of employer-provided health insurance that covers retirees also increased an individual’s probability of retirement.

Finally, results related to the macroeconomic conditions (as measured by the Dow Jones Industrial

Average) prevalent during an individual’s time in utero did not confirm the Barker hypothesis for the non-retired HRS subsample.

Date & Time: October, 7, 3.30 pm

Venue: Kyiv School of Economics (Ivana Mazepy Str., 1), room 206