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Retirement of Spouses and Social Security Reform

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Author Info
Falkinger, Josef
Winter-Ebmer, Rudolf
Zweimüller, Josef

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Abstract

The retirement decisions of spouses may be interdependent for various reasons: similarity of tastes, joint assets, sharing rules for income and housework, or complementarity of leisure. Because of data limitations, only a few empirical studies exist on this topic. From a policy point of view interdependent retirement could become important if legislators in different EC countries are forced to synchronize minimum retirement ages, which are lower now for females than males in a number of countries. In the theoretical part, the reaction of spouses to changes in the retirement age of their partners is analysed for typical family patterns. In the empirical part, the possibility of interdependent retirement is studied for Austrian data. The findings show an asymmetry: husbands react to changes in wives' legal minimum retirement age, wives don't react vice versa. The cross effect on men's participation rates -- resulting from a rise in women's minimum retirement age --is almost half as big as the first-round effect upon the women themselves.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 855.

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Date of creation: Jan 1994
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Handle: RePEc:cpr:ceprdp:855

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Related research
Keywords: Family Labour Supply; Minimum Retirement Age; Retirement;

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Find related papers by JEL classification:
D10 - Microeconomics - - Household Behavior - - - General
H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped

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  1. Luís Eduardo Afonso & Adriana Schor, 2001. "oferta de Trabalho dos Indivíduos com Idade Superior a 50 Anos: Algumas Características da Década de 90," Anais do XXIX Encontro Nacional de Economia [Proceedings of the 29th Brazilian Economics Meeting] 092, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics]. [Downloadable!]
  2. Monika BÜTLER, 2003. "Mandated Annuities in Switzerland," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 03.08, Université de Lausanne, Faculté des HEC, DEEP. [Downloadable!]
  3. Blau, David M. & Riphahn, Regina T., 1998. "Labor Force Transitions of Older Married Couples in Germany," IZA Discussion Papers 05, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Roman Rabb, 2009. "Financial Incentives in the Austrian PAYG-Pension System: Micro-Estimation," International Studies Program Working Paper Series, at AYSPS, GSU paper0902, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
  5. Monika Bütler, 2002. "Flexibility and Redistribution in Old Age Insurance," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 138(IV), pages 427-437, December. [Downloadable!]
  6. Arie Kapteyn & Constantijn Panis, 2003. "The Size and Composition of Wealth Holdings in the United States, Italy, and the Netherlands," NBER Working Papers 10182, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  7. Daniel S. Hamermesh, 2000. "Togetherness: Spouses' Synchronous Leisure, and the Impact of Children," NBER Working Papers 7455, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Monika Bütler & Olivia Huguenin & Federica Teppa, 2005. "Why Forcing People to Save Retirement May Backfire," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 05.05, Université de Lausanne, Faculté des HEC, DEEP. [Downloadable!]
  9. Monika Bütler & Olivia Huguenin & Federica Teppa, 2005. "Why Forcing People to Save for Retirement May Backfire," University of St. Gallen Department of Economics working paper series 2005 2005-09, Department of Economics, University of St. Gallen. [Downloadable!]
    Other versions:
  10. Agar Brugiavini & Franco Peracchi, 2001. "Micro Modeling Of Retirement Behavior In Italy," Departmental Working Papers 147, Tor Vergata University, CEIS. [Downloadable!]
    Other versions:
  11. Monika Bütler & Olivia Huguenin & Federica Teppa, 2005. "What Triggers Early Retirement? Results from Swiss Pension Funds," DNB Working Papers 041, Netherlands Central Bank, Research Department. [Downloadable!]
    Other versions:
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