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Labor Supply of Retiring Couples and Heterogeneity in Household Decision-Making Structure

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  • Zhiyang Jia

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Abstract

This paper analyzes the labor market participation behavior of retiring couples in Norway. To account for the unobserved heterogeneity in decision-making structure within the household, I formulate a mixed model by assuming there are two types of households, the cooperative type and the non-cooperative type. I assume that non-cooperative households behave according to a Stackelberg game with the male as the leader, while cooperative households engage in a cooperative bargaining process. The estimation results show that more than half of the households are of the non-cooperative type. Copyright Springer Science+Business Media, Inc. 2005

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File URL: http://hdl.handle.net/10.1007/s11150-005-0711-3
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Bibliographic Info

Article provided by Springer in its journal Review of Economics of the Household.

Volume (Year): 3 (2005)
Issue (Month): 2 (06)
Pages: 215-233

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Handle: RePEc:kap:reveho:v:3:y:2005:i:2:p:215-233

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Web page: http://www.springerlink.com/link.asp?id=109451

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Keywords: household labor supply; retirement; unobserved heterogeneity; mixed model;

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Cited by:
  1. Shiko Maruyama, 2010. "Estimation of Finite Sequential Games," Discussion Papers 2010-22, School of Economics, The University of New South Wales.
  2. Meier, Volker & Rainer, Helmut, 2013. "Beyond Ramsey: Gender-Based Taxation with Non-Cooperative Couples," Munich Reprints in Economics 19176, University of Munich, Department of Economics.
  3. John K. Dagsvik & Zhiyang Jia, 2006. "Labor Supply as a Choice among Latent Job Opportunities. A Practical Empirical Approach," Discussion Papers 481, Research Department of Statistics Norway.

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