A New Testing Method for Justification Bias Using High-Frequency Data of Health and Employment

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Bibliographische Detailangaben
Hauptverfasser:	Wen, Jiayi, Ye, Zixi, Zhang, Xuan
Format:	Preprint
Veröffentlicht:	2024
Schlagworte:	General Economics Economics
Online-Zugang:	Acceder al recurso
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author	Wen, Jiayi Ye, Zixi Zhang, Xuan
author_facet	Wen, Jiayi Ye, Zixi Zhang, Xuan
contents	Justification bias, wherein retirees may report poorer health to rationalize their retirement, poses a major concern to the widely-used measure of self-assessed health in retirement studies. This paper introduces a novel method for testing the presence of this bias in the spirit of regression discontinuity. The underlying idea is that any sudden shift in self-assessed health immediately following retirement is more likely attributable to the bias. Our strategy is facilitated by a unique high-frequency data that offers monthly, in contrast to the typical biennial, information on employment, self-assessed health, and objective health conditions. Across a wider post-retirement time frame, we observe a decline in self-assessed health, potentially stemming from both justification bias and changes in actual health. However, this adverse effect diminishes with shorter intervals, indicating no evidence of such bias. Our method also validates a widely-used indirect testing approach.
format	Preprint
id	arxiv_https___arxiv_org_abs_2403_06368
institution	arXiv
publishDate	2024
record_format	arxiv
spellingShingle	A New Testing Method for Justification Bias Using High-Frequency Data of Health and Employment Wen, Jiayi Ye, Zixi Zhang, Xuan General Economics Economics Justification bias, wherein retirees may report poorer health to rationalize their retirement, poses a major concern to the widely-used measure of self-assessed health in retirement studies. This paper introduces a novel method for testing the presence of this bias in the spirit of regression discontinuity. The underlying idea is that any sudden shift in self-assessed health immediately following retirement is more likely attributable to the bias. Our strategy is facilitated by a unique high-frequency data that offers monthly, in contrast to the typical biennial, information on employment, self-assessed health, and objective health conditions. Across a wider post-retirement time frame, we observe a decline in self-assessed health, potentially stemming from both justification bias and changes in actual health. However, this adverse effect diminishes with shorter intervals, indicating no evidence of such bias. Our method also validates a widely-used indirect testing approach.
title	A New Testing Method for Justification Bias Using High-Frequency Data of Health and Employment
topic	General Economics Economics
url	https://arxiv.org/abs/2403.06368

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