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Postponing retirement age and labor force participation : the role of family transfers

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Author Info

  • Pascal Belan

    (THEMA, Université de Cergy-Pontoise)

  • Pierre-Jean Messe

    (GAINS-TEPP, Université du Maine)

  • François-Charles Wolff

    (LEMNA, Université de Nantes)

Abstract

In this paper, we examine the consequences of delaying retirement in an overlapping generations model with domestic production and parental transfers in the form of grandchild care. We show that a change in age at retirement influences the employment rates of both young and the old. This interdependency stems from the provision of family transfers. Postponing retirement may increase time devoted to grandchild care transfers, which allows the young to work more on the labour market. We then study the conditions under which this positive family externality holds. Finally, using numerical simulations, we assess the consequences of delaying retirement on labour participation and account for public policy implications

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Bibliographic Info

Paper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (REL - Recherches Economiques de Louvain) with number 2010041.

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Length: 23
Date of creation: 01 Dec 2010
Date of revision:
Handle: RePEc:ctl:louvre:2010041

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Keywords: Retirement; domestic production; family transfers;

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References

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  1. de la Croix,David & Michel,Philippe, 2002. "A Theory of Economic Growth," Cambridge Books, Cambridge University Press, number 9780521806428.
  2. Echevarria, Cruz A., 2004. "Life expectancy, retirement and endogenous growth," Economic Modelling, Elsevier, vol. 21(1), pages 147-174, January.
  3. Casamatta, Georges & Cremer, Helmuth & Pestieau, Pierre, 2004. "Is there a Political Support for the Double Burden on Prolonged Activity?," IDEI Working Papers 315, Institut d'Économie Industrielle (IDEI), Toulouse.
  4. Masaru Sasaki, 2002. "The Causal Effect of Family Structure on Labor Force Participation among Japanese Married Women," Journal of Human Resources, University of Wisconsin Press, vol. 37(2), pages 429-440.
  5. Wolff, Francois-Charles, 2006. "Microeconomic models of family transfers," Handbook on the Economics of Giving, Reciprocity and Altruism, Elsevier.
  6. Ralitza Dimova & François-Charles Wolff, 2011. "Do downward private transfers enhance maternal labor supply? Evidence from around Europe," Journal of Population Economics, Springer, vol. 24(3), pages 911-933, July.
  7. François-Charles Wolff, 2006. "Parental transfers and the labor supply of children," Journal of Population Economics, Springer, vol. 19(4), pages 853-877, October.
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Cited by:
  1. admin, clsrn, 2011. "The Mom Effect: Family Proximity and the Labour Force Status of Women in Canada," CLSRN Working Papers clsrn_admin-2011-30, UBC Department of Economics, revised 28 Nov 2011.
  2. Janice Compton & Robert A. Pollak, 2011. "Family Proximity, Childcare, and Women's Labor Force Attachment," NBER Working Papers 17678, National Bureau of Economic Research, Inc.

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