Hearing loss and disability exit: Measurement issues and coping strategies

Area of Science:

• Audiology
• Gerontology
• Labor Economics

Background:

• Hearing loss is a common aging-related condition linked to early labor market exit.
• Previous studies relied on self-reported data, potentially introducing endogeneity bias.
• Understanding the causal impact of hearing ability on retirement is crucial for public health and economic policy.

Purpose of the Study:

• To estimate the causal effect of hearing loss on early retirement via disability benefits.
• To address the endogeneity of self-reported functional hearing ability.
• To investigate the role of coping strategies and assistive devices in mitigating retirement risks.

Main Methods:

• Utilized unique Danish population data (aged 50-64) with both self-reported and clinically measured hearing ability.
• Employed simultaneous estimation of labor supply, functional hearing, and coping strategies.
• Used hearing aid availability as an instrumental variable for functional hearing.

Main Results:

• Functional hearing problems significantly increase the likelihood of receiving disability benefits for both men and women.
• The effect of hearing loss on disability benefits is substantially larger for men (47% increase) compared to women (20% increase).
• Workplace accommodations, such as assistive devices, decrease benefit likelihood, while informing employers increases it.

Conclusions:

• Hearing loss is a significant driver of early retirement through disability benefits, particularly for men.
• Endogeneity bias in self-reported hearing is more severe for men.
• Workplace interventions and assistive devices can help older workers with hearing loss remain in the labor force.