SeaTE: Subjective ex ante Treatment Effect of Health on Retirement

The paper studies the effect of health on work among older workers by eliciting two- and four-year-ahead subjective probabilities of working under alternative health states. These measures predict work outcomes. Person-specific differences in working probabilities across health states can be interpreted as Subjective ex ante Treatment Effects (SeaTEs) in a potential outcomes framework and as taste for work within a discrete choice dynamic programming framework. There is substantial heterogeneity in expectations of work conditional on health. The paper shows how heterogeneity in taste for work correlated with health can bias regression estimates of the effect of health on retirement. (JEL D84, I12, J14, J22, J26)

• Publication year

  2019

• Venue

  American Economic Journal: Applied Economics

• Publication date

  2019-07-01

• Fields of study

  Economics

• Identifiers
  DOI 10.3386/W26087
• External record

  Open on Semantic Scholar

• Source metadata

  Semantic Scholar

• No claims are published for this paper.

• No concepts are published for this paper.

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