Advanced Search
MyIDEAS: Login

Time use and options for retirement in Europe

Contents:

Author Info

  • Hannu Piekkola

    ()
    (University of Vaasa)

  • Liisa Leijola

    ()
    (The Research Institute of the Finnish Economy)

Registered author(s):

    Abstract

    This paper examines the incentive effects of market and household work on retirement. This is accomplished by documenting the time use in market and household work in selected European countries. The assignment of an economic value to household work assumes substitutability of market and household work of some degree. With continuous lifetime patterns, household work may also replace market work after retirement. We construct re-placement rates and option values that include the value of household work for 7 European countries. It is shown that the inclusion of household work in calculations on incentives makes the prospect of retiring more attractive, and that the calculation results correlate with actual retirement ages in Europe. Replacement rates are close to or exceed 100% when household work is accounted for. For men the increase in household work after withdrawing from the labour market is larger in relative terms (double on average). Therefore the effect of accounting for household work in the financial incentive to retire is greater for men.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://ffb.uni-lueneburg.de/eijtur/pdf/volumes/eIJTUR-4-1.pdf#page=2
    Download Restriction: no

    Bibliographic Info

    Article provided by Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)) and The International Association for Time Use Research (IATUR) in its journal electronic International Journal of Time Use Research.

    Volume (Year): 4 (2007)
    Issue (Month): 1 (September)
    Pages: 1-29

    as in new window
    Handle: RePEc:leu:journl:2007:vol4:p1-29

    Contact details of provider:
    Web page: http://ffb.uni-lueneburg.de/repec/leu/
    More information through EDIRC

    Related research

    Keywords: Retirement; option value; time use; leisure; household work; option value;

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Leibowitz, Arleen, 1974. "Home Investments in Children," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages S111-S131, Part II, .
    2. Katz, L.F. & Murphy, K.M., 1991. "Changes in Relative Wages, 1963-1987: Supply and Demand Factors," Harvard Institute of Economic Research Working Papers 1580, Harvard - Institute of Economic Research.
    3. Gronau, Reuben, 1977. "Leisure, Home Production, and Work-The Theory of the Allocation of Time Revisited," Journal of Political Economy, University of Chicago Press, vol. 85(6), pages 1099-1123, December.
    4. Datcher-Loury, Linda, 1988. "Effects of Mother's Home Time on Children's Schooling," The Review of Economics and Statistics, MIT Press, vol. 70(3), pages 367-73, August.
    5. Bound, John & Johnson, George, 1992. "Changes in the Structure of Wages in the 1980's: An Evaluation of Alternative Explanations," American Economic Review, American Economic Association, vol. 82(3), pages 371-92, June.
    6. John Sandberg & Sandra Hofferth, 2001. "Changes in children’s time with parents: United States, 1981–1997," Demography, Springer, vol. 38(3), pages 423-436, August.
    7. Francine D. Blau, 1998. "Trends in the Well-Being of American Women, 1970-1995," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 112-165, March.
    8. Flood, Lennart & Gråsjö, Urban, 1998. "Regression Analysis and Time Use Data A Comparison of Microeconometric Approaches with Data from the Swedish Time Use Survey (HUS)," Working Papers in Economics 5, University of Gothenburg, Department of Economics.
    9. Arleen Leibowitz, 1974. "Home Investments in Children," NBER Chapters, in: Marriage, Family, Human Capital, and Fertility, pages 111-135 National Bureau of Economic Research, Inc.
    10. Tim Barmby & Nina Smith, 2001. "Household labour supply in Britain and Denmark: some interpretations using a model of Pareto Optimal behaviour," Applied Economics, Taylor & Francis Journals, vol. 33(9), pages 1109-1116.
    11. Gershuny, Jonathan, 2000. "Changing Times: Work and Leisure in Postindustrial Society," OUP Catalogue, Oxford University Press, number 9780198287872.
    12. Anne H. Gauthier & Timothy M. Smeeding & Frank F. Furstenberg, 2004. "Are Parents Investing Less Time in Children? Trends in Selected Industrialized Countries," Population and Development Review, The Population Council, Inc., vol. 30(4), pages 647-672.
    13. McDonald, John F & Moffitt, Robert A, 1980. "The Uses of Tobit Analysis," The Review of Economics and Statistics, MIT Press, vol. 62(2), pages 318-21, May.
    14. Levy, Frank & Murnane, Richard J, 1992. "U.S. Earnings Levels and Earnings Inequality: A Review of Recent Trends and Proposed Explanations," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1333-81, September.
    15. Katz, Lawrence F. & Autor, David H., 1999. "Changes in the wage structure and earnings inequality," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 26, pages 1463-1555 Elsevier.
    16. C. Russell Hill & Frank P. Stafford, 1980. "Parental Care of Children: Time Diary Estimates of Quantity, Predictability, and Variety," Journal of Human Resources, University of Wisconsin Press, vol. 15(2), pages 219-239.
    17. O'Neill, June & Polachek, Solomon, 1993. "Why the Gender Gap in Wages Narrowed in the 1980s," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages 205-28, January.
    18. Belton Fleisher, 1977. "Mother’s home time and the production of child quality," Demography, Springer, vol. 14(2), pages 197-212, May.
    19. Polachek, Solomon, 2004. "How the Human Capital Model Explains Why the Gender Wage Gap Narrowed," IZA Discussion Papers 1102, Institute for the Study of Labor (IZA).
    20. Arleen Leibowitz, 1974. "Home Investments in Children," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 432-456 National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Ruuskanen, Olli-Pekka, 2006. "Time Use During the Parental Leave and the Return to the Employment," Discussion Papers 1060, The Research Institute of the Finnish Economy.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:leu:journl:2007:vol4:p1-29. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Merz).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.