ARC Centre of Excellence in Population Ageing

This study aims to investigate the impact of retirement and re-employment on the life satisfaction of older individuals in Korea. [...] One of the limitations in previous studies exploring the relationship between retirement and life satisfaction is the lack of valid exogenous variations in retirement status (or re-employment status) to prevent multiple sources of endogeneity. [...] Moreover, to the best of our knowledge, our study is the first to employ these instrumental variables to examine the effect of re-employment on the life satisfaction of older people. [...] Estimation of the Effects of Retirement on Life Satisfaction of Older Individuals 3.1 Empirical specification and estimation results 10 First, to investigate the effects of retirement on the life satisfaction of older individuals, we established a statistical model applicable to balanced panel data for older people aged 55 and above across multiple survey years as follows: (1) 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 𝑠 . [...] In all the estimations of Equation (6), we use the same control variables as in Column (4) of Table 4.6 For all 𝑘𝑘 = 6 When controlling for reemployment, the estimates of 𝛾𝛾k and 𝛿𝛿𝑗𝑗 change only slightly, confirming the robustness of the results presented here.