Open Journal Systems

Does retirement affect alcohol expenditure? Evidence from urban Chinese older adults in 2002-2009

Hong Zou, Bingjiang Luan, Kaizhi Yu, Hongwei Xu

Abstract

Exploiting China’s mandatory retirement policy, we used fuzzy regression discontinuity design to estimate the effect of retirement on household alcohol expenditure among urban Chinese older adults ages 50–70. Drawing on data from the Urban Household Survey of China Statistics Bureau for the period of 2002–2009, we found that having a retired male household head significantly reduced total household expenditure on alcohol by 32%. After breaking down by different types of alcohol, we found that the retirement effect was largely driven by expenditure on liquor. We explored two potential mechanisms that may explain the retirement effect. The first mechanism relates to decreased disposable income after retirement and the second mechanism involves reduced demand of social drinking after retirement. Our findings suggest that the urban Chinese older adults experience substantial change in such health behavior as drinking as they retire. This has important public policy implications as China is facing a severe challenge of rapid population aging.

Keywords

alcohol expenditure; China; retirement; regression discontinuity design

Full Text:

PDF

References

Bacharach SB, Bamberger PA, Cohen A and Doveh E (2007). Retirement, social support, and drinking behavior: A cohort analysis of males with a baseline history of problem drinking. Journal of Drug Issues, 37(3), 525-548. https://doi.org/10.1177/002204260703700303.

Bacharach S, Bamberger P, Biron M and Horowitzrozen M (2008). Perceived agency in retirement and retiree drinking behavior: Job satisfaction as a moderator. Journal of Vocational Behavior, 73(3), 376-386. https://doi.org/10.1016/j.jvb.2008.07.007.

Bacharach SB, Bamberger PA and Sonnenstuhl WJ, et al. (2004). Retirement, risky alcohol consumption and drinking problems among blue-collar workers. Journal of Studies on Alcohol and Drugs, 65(4), 537-545. https://doi.org/10.15288/jsa.2004.65.537.

Bamberger PA (2015). Winding down and boozing up: The complex link between retirement and alcohol misuse. Work, Aging and Retirement, 1(1), 92-111. https://doi.org/10.1093/workar/wau001.

Behncke S (2012). Does retirement trigger ill health? Health Economics, 21(3), 282-230. https://doi.org/10.1002/hec.1712.

Booth BM, Curran GM and Han X (2004). Predictors of short-term course of drinking in untreated rural and urban at-risk drinkers: Effects of gender, illegal drug use and psychiatric comorbidity. Journal of Studies on Alcohol and Drugs, 65(65), 63-73. doi: org/10.15288/jsa.2004.65.63.

Bossé R, Aldwin CM, Levenson MR and Workmandaniels K (1991). How stressful is retirement? Findings from the normative aging study. Journal of Gerontology, 46(1), 9-14. https://doi.org/10.1093/geronj/46.1.P9.

Brennan PL, Schutte KK and Moos RH (2010). Retired status and older adults’ 10-year drinking trajectories. Journal of Studies on Alcohol and Drugs, 71(2), 165-168. doi.: org/10.15288/jsad.2010.71.165.

Che Y and Li X (2018). Retirement and health: Evidence from China. China Economic Review, 1, 84-95. https://doi.org/10.1016/j.chieco.2018.01.005.

Dave D, Rashad I and Spasojevic J (2008). The effects of retirement on physical and mental health outcomes. Southern Economic Journal, 75(2), 497-523. https://doi.org/10.2139/ssrn.1024475

Dong Y and Yang DT (2016). Mandatory retirement and the consumption puzzle: Prices decline or quantities decline? Social Science Electronic Publishing, 55, 16-251. https://doi.org/10.2139/ssrn.2744760.

Eibich P (2015). Understanding the effect of retirement on health: Mechanisms and heterogeneity. Journal of Health Economics, 43, 1-12. https://doi.org/10.1016/j.jhealeco.2015.05.001.

Frölich, M and Huber M (2018), Including covariates in the regression discontinuity design. Journal of Business and Economic Statistics, (just-accepted). https://doi.org/10.1080/07350015.2017.1421544.

Gallo WT, Bradley EH, Siegel M and Kasl SV (2001), The impact of involuntary job loss on subsequent alcohol consumption by older workers: Findings from the health and retirement survey. Journals of Gerontology, 56(1), S3. https://doi.org/10.1093/geronb/56.1.S3.

Gea A, Bes-Rastrollo M and Toledo E, et al. (2014). Mediterranean alcohol-drinking pattern and mortality in the sun (seguimiento universidad de navarra) project: A prospective cohort study. British Journal of Nutrition, 111(10), 1871-1880. https://doi.org/10.1017/S0007114513004376.

Gelman A and Imbens G. (2018). Why high-order polynomials should not be used in regression discontinuity designs. Journal of Business and Economic Statistics, 1–10. https://doi.org/10.1080/07350015.2017.1366909.

Gilson K M, Bryant C and Bei B, et al.(2013). Validation of the drinking motives questionnaire (DMQ) in older adults. Addictive Behaviors, 38(5), 2196-2202.http://doi.org/10.1016/j.addbeh.2013.01.021.

Hahn J, Todd P and van der Klaauw W (2001). Identification and estimation of treatment effects with a regression-discontinuity design. Econometrica, 69(1), 201-209. https://doi.org/10.1111/1468-0262.00183.

Henkens K, van Solinge and Gallo WT (2008). Effects of retirement voluntariness on changes in smoking, drinking and physical activity among Dutch older workers. European Journal of Public Health, 18(6), 644-649. doi: 10.1093/eurpub/ckn095.

Hurd MD and Rohwedder S (2005). Changes in Consumption and Activities in Retirement. Dnb Working Papers. https://doi.org/10.2139/ssrn.1093709.

Imbens G and Lemieux T. (2008). Special issue editors’ introduction: The regression discontinuity design—Theory and applications. Journal of Econometrics, 142(2), 611–614. https://doi.org/10.1016/j.jeconom.2007.05.008.

Insler M (2014). The health consequences of retirement. Journal of Human Resources, 49(1), 195-233. https://doi.org/10.3368/jhr.49.1.195.

Karen B, Paul S and Smith CA (2015). Understanding older adults’ attitudes and beliefs about drinking: Perspectives of residents in congregate living. Ageing and Society, 35(9), 1889-1904. https://doi.org/10.1017/S0144686X14000671.

Kuerbis A and Sacco P (2012). The impact of retirement on the drinking patterns of older adults: A review. Addictive Behaviors, 37(5), 587-595. https://doi.org/10.1016/j.addbeh.2012.01.022.

Lee DS and Lemieux T (2010). Regression discontinuity design in economics. Journal of Economic Literature, 48, 281-355. https://doi.org/10.1257/jel.48.2.281.

Li H, Shi X and Wu B (2016). The retirement consumption puzzle revisited: Evidence from the mandatory retirement policy in China. Journal of Comparative Economics, 44(3), 623-637. https://doi.org/10.1016/j.jce.2015.06.001.

Mccrady BS (2004). To have but one true friend: implications for practice of research on alcohol use disorders and social network. Psychology of Addictive Behaviors, 18(2), 113-121. http://doi.org/10.1037/0893-164x.18.2.113.

Mcgarry K (2004). Health and retirement: Do changes in health affect retirement expectations? Social Science Electronic Publishing, 39(3), 624-648. https://doi.org/10.3368/jhr.XXXIX.3.624.

Ministry of Civil Affairs of the People’s Republic of China (2017). Statistic Bulletin of Social Services and Development; 2016. Available from: http://www.gov.cn/shuju/2017-08/03/content_5215805.htm. [Last accessed on 2018 May 22].

Moore AA, Endo JO and Carter MK (2003). Is there a relationship between excessive drinking and functional impairment in older persons? Journal of the American Geriatrics Society, 51(1), 44–49. https://doi.org/10.1034/j.1601-5215.2002.51008.x.

Moos RH, Schutte KK and Brennan PL, et al. (2010). Late-life and life history predictors of older adults of high-risk alcohol consumption and drinking problems. Drug and Alcohol Dependence, 108, 13-20. https://doi.org/10.1016/j.drugalcdep.2009.11.005.

Müller T and Shaikh M (2016). Your retirement and my health behavior: Evidence on retirement externalities from a fuzzy regression discontinuity design. Royal Economic Society Junior Researcher Symposium, 57, 45-59. https://doi.org/10.1016/j.jhealeco.2017.10.005.

Ortolá R, Garcíaesquinas E and Galán I, et al. (2017). Patterns of alcohol consumption and risk of falls in older adults: A prospective cohort study. Osteoporosis International, 3, 1-10. https://doi.org/10.1007/s00198-017-4157-2.

Ortolá R, Garcíaesquinas E, Galán I and Rodríguezartalejo F (2016). Patterns of alcohol consumption and health-related quality of life in older adults. Drug and Alcohol Dependence, 159, 166-173. https://doi.org/10.1016/j.drugalcdep.2015.12.012.

Oshio T and Kan M (2017). The dynamic impact of retirement on health: Evidence from a nationwide ten-year panel survey in Japan. Preventive Medicine, 100, 287-293. https://doi.org/10.1016/j.ypmed.2017.04.007.

Park A, Shi X, Hsieh CT and An X (2015). Magnet high schools and academic performance in China: A regression discontinuity design. Journal of Comparative Economics, 43(4), 825-843. https://doi.org/10.1016/j.jce.2015.10.013.

Perreira KM and Sloan FA (2001). Life events and alcohol consumption among mature adults: A longitudinal analysis. Journal of Studies on Alcohol and Drugs, 62(4), 501-508. https://doi.org/10.15288/jsa.2001.62.501.

Rehm J, Greenfield, TK and Rogers JD. (2001). Average volume of alcohol consumption, patterns of drinking, and all-cause mortality: results from the US national alcohol survey. American Journal of Epidemiology, 153(1), 64-71. https://doi. org/10.1093/aje/153.1.64

Rehm J, Baliunas D and Borges G, et al. (2010). The relation between different dimensions of alcohol consumption and burden of disease: An overview. Addiction, 105(5), 817-843. https://doi.org/10.1111/j.1360-0443.2010.02899.x.

Rehm J, Room R and Graham K, et al. (2003). The relationship of average volume of alcohol consumption and patterns of drinking to burden of disease: An overview. Addiction, 98(9), 1209-1228. https://doi.org/10.1046/j.1360-0443.2003.00467.x.

Ronksley PE, Brien SE and Turner BJ, et al. (2011). Association of alcohol consumption with selected cardiovascular disease outcomes: A systematic review and meta-analysis. BMJ, 342(7795), d671. https://doi.org/10.1136/bmj.d671.

Rosenquist JN, Murabito J, Fowler JH and Christakis NA (2010). The spread of alcohol consumption behavior in a large social network. Annals of Internal Medicine, 152(7), 426-433. https://doi.org/10.7326/0003-4819-152-7-201004060-00007.

Veenstra MY, Lemmens PH and Friesema IH, et al. (2006). A literature overview of the relationship between life-events and alcohol use in the general population. Alcohol and Alcoholism, 41(4), 455-463. https://doi.org/10.1093/alcalc/agl023.

Wang X, Steier JB and Gallo WT (2014). The effect of retirement on alcohol consumption: Results from the us health and retirement study. European Journal of Public Health, 24(3), 485-489. https://doi.org/10.1093/eurpub/cku027.

World Health Organization (2015). China Country Assessment Report on Ageing and Health. Available from: http//www.who.int/ageing/publications/china-country-assessment/en. [Last accessed on 2018 May 22].

Zantinge EM, van den Berg M, Smit HA and Picavet HS (2014). Retirement and a healthy lifestyle: Opportunity or pitfall? A narrative review of the literature. European Journal of Public Health, 24(3), 433-439. https://doi.org/10.1093/eurpub/ckt157.

Ziebarth NR, Grabka MM (2009). In vino Pecunia? The association between beverage-specific drinking behavior and wages. Journal of Labor Research, 30(3), 219-244. https://doi.org/10.1007/s12122-009-9064-7.

Zins M, Guéguen A and Kivimaki M, et al. (2011). Effect of retirement on alcohol consumption: Longitudinal evidence from the French Gazel cohort study. Plos One, 6(10), e26531. https://doi.org/10.1371/journal.pone.0026531.


DOI: http://dx.doi.org/10.18063/ijps.v4i1.420
(234 Abstract Views, 108 PDF Downloads)

Refbacks

  • There are currently no refbacks.


Copyright (c) 2018 Hong Zou, Bingjiang Luan, Kaizhi Yu, Hongwei Xu

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.