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Retirement of Spouses and Social Security Reform

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  • Falkinger, Josef
  • Winter-Ebmer, Rudolf
  • Zweimüller, Josef

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

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  1. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
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  3. Zweimuller, Josef, 1992. "Partial Retirement and the Earnings Test," Institute for Research on Labor and Employment, Working Paper Series, Institute of Industrial Relations, UC Berkeley qt1gq8c1t2, Institute of Industrial Relations, UC Berkeley.
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  6. Falkinger, Josef & Winter-Ebmer, Rudolf & Zweimüller, Josef, 1994. "Retirement of Spouses and Social Security Reform," CEPR Discussion Papers, C.E.P.R. Discussion Papers 855, C.E.P.R. Discussion Papers.
  7. François Bourguignon, 1984. "Rationalité individuelle ou rationalité stratégique : le cas de l'offre familiale de travail," Revue Économique, Programme National Persée, vol. 35(1), pages 147-162.
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  12. repec:fth:guelph:1993-3 is not listed on IDEAS
  13. Michael D. Hurd, 1988. "The Joint Retirement Decision of Husbands and Wives," NBER Working Papers 2803, National Bureau of Economic Research, Inc.
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