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

Author

Listed:
  • 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

Suggested Citation

  • Pascal Belan & Pierre-Jean Messe & François-Charles Wolff, 2010. "Postponing retirement age and labor force participation : the role of family transfers," Discussion Papers (REL - Recherches Economiques de Louvain) 2010041, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    • Handle: RePEc:ctl:louvre:2010041
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    References listed on IDEAS

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    Cited by:

    1. Compton, Janice & Pollak, Robert A., 2014. "Family proximity, childcare, and women’s labor force attachment," Journal of Urban Economics, Elsevier, vol. 79(C), pages 72-90.
    2. Pierre-Jean Messe & Eva Moreno-Galbis & François-Charles Wolf, 2014. "Retirement intentions in the presence of technological change: Theory and evidence from France," TEPP Working Paper 2014-04, TEPP.
    3. admin, clsrn, 2011. "The Mom Effect: Family Proximity and the Labour Force Status of Women in Canada," CLSSRN working papers clsrn_admin-2011-30, Vancouver School of Economics, revised 28 Nov 2011.
    4. Belan Pascal & Moussault Erwan, 2020. "Inheritance Taxation in a Model with Intergenerational Time Transfers," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 20(1), pages 1-19, January.
    5. Janice Compton, 2015. "Family proximity and the labor force status of women in Canada," Review of Economics of the Household, Springer, vol. 13(2), pages 323-358, June.

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    More about this item

    Keywords

    Retirement; domestic production; family transfers;
    All these keywords.

    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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