UM17-02 - Cognition, Health, Employment, and Wages Near Retirement in EnglandEric French, Jack Britton, Monica Costa Dias and Richard Blundell
This project will estimate the effect of cognition and physical health on labor supply and wages for England and the U.S. Using the English Longitudinal Study of Ageing and the Health and Retirement Study, we will: (i) estimate how physical health and cognitive ability change near retirement age; (ii) assess how health changes affect employment and wages; (iii) assess the extent to which declines in health and cognition can explain the decline in work hours near retirement. We consider the possibility that health impacts employment and wages both directly, through reduced work capacity, and indirectly, through a longer-run impact on human capital. Our results will shed new light on the importance of health risk around retirement and the consequences of poor health for labor supply. This is critical to inform the design of welfare and retirement policies aiming to protect older workers and promote work.