Does Retirement Make People Happier?-Evidence From China

Area of Science:

• Social Sciences
• Economics
• Sociology

Background:

• Understanding the impact of retirement on individual well-being is crucial for aging societies.
• Previous research on retirement and happiness has yielded mixed results, necessitating further empirical investigation.

Purpose of the Study:

• To empirically investigate the causal effect of retirement on happiness among urban Chinese men.
• To explore heterogeneity in the retirement-happiness relationship based on demographic and socioeconomic factors.

Main Methods:

• Utilized data from the China General Social Survey (CGSS) for 2012, 2015, and 2017.
• Employed Ordinary Least Squares (OLS), Binary logit, and Fuzzy Regression Discontinuity Design (FRDD) for robust causal inference.
• Performed rigorous validation checks, including testing covariate continuity and employing alternative sample classifications.

Main Results:

• Retirement significantly increases happiness for urban Chinese men.
• The positive effect of retirement on happiness is more pronounced for individuals with a college degree or less and those with multiple children.
• Better health status and increased social interactions attenuate the positive impact of retirement on happiness.

Conclusions:

• Retirement is a significant determinant of increased happiness for urban Chinese men.
• Policy recommendations emphasize tailored support for vulnerable groups during delayed retirement transitions.
• Findings contribute to the global discourse on aging, welfare policies, and retirement transitions.