Retirement behavior of the elderly in Europe: The importance of being healthy

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Economics from the NOVA – School of Business and Economics

This work project addresses elderly individuals’ retirement behavior in 16 European countries. I use the longitudinal Survey of Health, Aging and Retirement in Europe (SHARE), Wave 4, to analyze the dynamic relationship between health and men and women’s retirement decision in later life. The evidence suggests that each health indicator (severe and mild condition, obesity, having restrictions in activities of daily living and grip strength) has its own significant effect on individual’s retirement decisions. Such effect varies across countries, and differs from men to women. Moreover, the empirical analysis shows that some socio demographic indicators are also very important for aging people’s retirement decision, especially, the education level.