Spousal Health Shocks and Individuals’ Labor Participation and Retirement Decision: Causal Evidence from the US
2024
Spousal Health Shocks and Labor Participation
publication
Evidence: moderate
Author Information
Author(s): Li Meiyi
Primary Institution: University of Wisconsin-Madison
Hypothesis
What are the causal impacts of spousal health shocks on individuals’ employment and retirement behaviors?
Conclusion
Spousal health shocks reduce the likelihood of working for pay and increase the likelihood of retirement among older adults.
Supporting Evidence
- Spousal health shocks reduce the probability of working for pay.
- Spousal health shocks increase the probability of retirement.
- There are no significant gender differences in labor outcomes.
Takeaway
When a spouse gets seriously ill, it can make the other spouse stop working and retire earlier.
Methodology
The study used nationally representative data and combined matching methods with a difference-in-differences design.
Participant Demographics
Older adults in the US.
Digital Object Identifier (DOI)
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