Retirement Blues and Boons: Health and Spillover Effects of Retirement in China

This paper estimates the causal effect of retirement and spousal retirement on health and
health-related behaviors. A fuzzy regression discontinuity (FRD) framework is applied exploiting statutory
retirement policies in China. Using data from the first three waves of the China Health and
Retirement Longitudinal Study (CHARLS), I find that own retirement has adverse effects on
subjective health status and mental health for both genders but its effects are relatively larger
for women. I also find that women produce beneficial retirement spillovers on husbands’ health but
do not experience any spillover effects themselves. A reduction in physical activities, increase in
sedentary activities, and childcare for grandchildren appear to be underlying channels driving the
adverse effects.