Lassoing the Determinants of Retirement
AbstractThis paper uses Danish register data to explain the retirement decision of workers in 1990 and 1998.Many variables might be conjectured to influence this decision such as demographic, socio-economic, financially and health related variables as well as all the same factors for the spouse in case the individual is married. In total we have access to 399 individual specific variables that all could potentially impact the retirement decision.We use variants of the Lasso and the adaptive Lasso applied to logistic regression in order to uncover determinants of the retirement decision. To the best of our knowledge this is the first application of these estimators in microeconometrics to a problem of this type and scale. Furthermore, we investigate whether the factors influencing the retirement decision are stable over time, gender and marital status. It is found that this is the case for core variables such as age, income, wealth and general health. We also point out themost important differences between these groups and explain why these might be present.
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Bibliographic InfoPaper provided by School of Economics and Management, University of Aarhus in its series CREATES Research Papers with number 2013-21.
Date of creation: 06 2013
Date of revision:
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Web page: http://www.econ.au.dk/afn/
Retirement; Register data; High-dimensional data; Lasso; Adaptive Lasso; Oracle property; Logistic regression;
Find related papers by JEL classification:
- C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- J0 - Labor and Demographic Economics - - General
- J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
- J62 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Job, Occupational and Intergenerational Mobility; Promotion
This paper has been announced in the following NEP Reports:
- NEP-AGE-2013-07-05 (Economics of Ageing)
- NEP-ALL-2013-07-05 (All new papers)
- NEP-EUR-2013-07-05 (Microeconomic European Issues)
- NEP-LAB-2013-07-05 (Labour Economics)
- NEP-LMA-2013-07-05 (Labor Markets - Supply, Demand, & Wages)
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