The effect of retirement eligibility on mental health in the United Kingdom: Heterogeneous effects by occupation

Abstract

AbstractI investigate heterogeneity across occupational characteristics in the effect of retirement eligibility on mental health in the United Kingdom. I use K‐means clustering to define three occupational clusters, differing across multiple dimensions. I estimate the effect of retirement eligibility using a Regression Discontinuity Design, allowing the effect to differ by cluster. The effects of retirement eligibility are beneficial, and greater in two clusters: one comprised of white‐collar jobs in an office setting and another of blue‐collar jobs with high physical demands and hazards. The cluster with smaller benefits mixes blue‐ and white‐collar uncompetitive jobs with high levels of customer interaction. The results have implications for the distributional effect of raising the retirement age.