An Analysis of the Health and Retirement Status of the Elderly

31 Pages Posted: 15 Mar 2004 Last revised: 29 Jun 2010

See all articles by Robin C. Sickles

Robin C. Sickles

Rice University - Department of Economics

Paul Taubman

University of Pennsylvania - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: September 1984

Abstract

in this paper we specify and estimate a structural limited dependent variable model with which we study both the health and retirement status of the elderly. Standard linear estimators, which assume that these variable sare continuous, are not appropriate and categorical estimation techniques are preferred. Our model differs from previous work in that we have longitudinal data and random effects that are correlated over time for different individuals. The problem is made more complicated because there is sample truncation, which could potentially bias coefficient estimates, since approximately twenty percent of the individuals in our sample die. We outline the full information maximum likelihood estimator for such a model and implement it in our empirical analysis. With our structural estimates we analyze, among other things, the degree to which endogeneously determined health status affects the probability of retirement and how changes in social security benefits and eligibility for transfer payments modify both healthiness and the demand for leisure.

Suggested Citation

Sickles, Robin C. and Taubman, Paul, An Analysis of the Health and Retirement Status of the Elderly (September 1984). NBER Working Paper No. w1459, Available at SSRN: https://ssrn.com/abstract=334285

Robin C. Sickles (Contact Author)

Rice University - Department of Economics ( email )

6100 South Main Street
Houston, TX 77005
United States

Paul Taubman

University of Pennsylvania - Department of Economics

Ronald O. Perelman Center for Political Science
133 South 36th Street
Philadelphia, PA 19104-6297
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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