Does Retirement Change Lifestyle Habits?

Author Name MOTEGI Hiroyuki  (University of Tokyo) /NISHIMURA Yoshinori  (University of Tokyo) /TERADA Kazuyuki  (University of Tokyo)
Creation Date/NO. May 2015 15-E-068
Research Project Toward a Comprehensive Resolution of the Social Security Problem: A new economics of aging
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This paper studies the effect of retirement on lifestyle habits, including drinking, smoking, exercise, and sleeping, by using panel data from the Japanese Study of Aging and Retirement (JSTAR). Rich information in JSTAR enables us to use an interesting instrumental variable to account for endogeneity. We have three contributions in this paper. This is the first paper that focuses on and investigates the mechanism of the relation between retirement and health, namely, lifestyle habits. Second, new results show that people reduce drinking after retirement and increase sleeping time on weekdays although smoking, frequency of exercise, and sleeping time on holidays seem to be unchanged. Third, controlling important factors also allows us to inspect the detailed channels between retirement and lifestyle habits. Our estimation suggests that the peer effect in the workplace may be influential mainly on drinking habits.