The causal effect of retirement on health is studied using the Australian 1993 Age Pension reform to isolate exogenous variation in retirement status. Using instrumental variable methods we find that retirement has a positive impact on subjective and objective measures of health.

We extend Hansen’s (2005) test to testing hypotheses involving general inequality constraints where the variance–covariance matrix of the functions in the constraints depends on the unknown parameters. The test can be applied to a wider class of problems than Wolak’s (1991).

We link ATUS 2003-04 to March CPS data and examine market work's effects on non-market activity. In a structural model fixed time costs of work generate a utility-equivalent of 8% of income to be overcome before working becomes optimizing.