We estimate the impact of health and financial incentives on the retirement transitions of older workers in Spain …. Individual measures of pension wealth, peak and accrual values are constructed using labor market histories and health shocks are … derived as changes in a composite health stock measure over time. We examine labour market exits into both old age retirement …

. Se1f-assessed health measures are usually at hand in empiricalanalyses and research indicates that these may be affected … by endogenous, state dependent, reporting behaviour. Furthermore, even if an objective health measure is used, it is not … likely to be strictly exogenous to labour market status or labour income. Health and labour market variables are …