Drop in consumption associated with retirement. The regression discontinuity design approach

In this paper we investigate the size of the consumption drop in Russia We use micro data on the household consumption of food and non-durables collected during the survey of household welfare and participation in social programs (NOBUS) We use the regression discontinuity design and impose an identifying assumption that consumption would be the same around the threshold of pension eligibility if individuals did not retire We estimate that a 20 6 percent drop in consumption is associated with retirement induced by eligibility