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The Retirement Behavior of Married Couples: Evidence From The Spouse’s Allowance

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Author Info
Michael Baker

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Abstract

I examine the effects of the introduction of the Spouse’s Allowance to the Canadian Income Security system on the retirement behavior of couples. This policy intervention provides an excellent opportunity to investigate how income security programs affect the timing of retirement. The structure of the Allowance also provides a view of how programs targeted at one spouse can affect the behavior of the other. Finally, conditional of the types of data available for this time period, the analysis considers the joint labor market decisions of couples. The results indicate that the introduction of the Allowance is associated with decreased employment rates and increased not in the labor force rates among eligible males. Eligible females did not share the rising employment rates over the 1970s experienced by their counterparts who were not eligible for the Spouse’s Allowance.

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Paper provided by California Davis - Department of Economics in its series Department of Economics with number 99-03.

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Handle: RePEc:fth:caldec:99-03

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Postal: University of California Davis - Department of Economics. One Shields Ave., California 95616-8578
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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Michael D. Hurd, 1990. "The Joint Retirement Decision of Husbands and Wives," NBER Chapters, in: Issues in the Economics of Aging, pages 231-258 National Bureau of Economic Research, Inc. [Downloadable!]
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  2. Baker, Michael & Benjamin, Dwayne, 1999. "Early Retirement Provisions and the Labor Force Behavior of Older Men: Evidence from Canada," Journal of Labor Economics, University of Chicago Press, vol. 17(4), pages 724-56, October. [Downloadable!] (restricted)
  3. Blau, David M, 1998. "Labor Force Dynamics of Older Married Couples," Journal of Labor Economics, University of Chicago Press, vol. 16(3), pages 595-629, July. [Downloadable!] (restricted)
  4. Jonathan Gruber, 1997. "Social Security and Retirement in Canada," NBER Working Papers 6308, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May. [Downloadable!] (restricted)
  6. Baker, Michael & Benjamin, Dwayne, 1999. "How do retirement tests affect the labour supply of older men?," Journal of Public Economics, Elsevier, vol. 71(1), pages 27-51, January. [Downloadable!] (restricted)
  7. Blau, David M., 1997. "Social security and the labor supply of older married couples," Labour Economics, Elsevier, vol. 4(4), pages 373-418, December. [Downloadable!] (restricted)
  8. Pozzebon, Silvana & Mitchell, Olivia S, 1989. "Married Women's Retirement Behavior," Journal of Population Economics, Springer, vol. 2(1), pages 39-53.
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Courtney Coile, 2003. "Retirement Incentives and Couples' Retirement Decisions," NBER Working Papers 9496, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Michaud, P.C., 2003. "Joint labour supply dynamics of older couples," Discussion Paper 69, Tilburg University, Center for Economic Research. [Downloadable!]
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  3. Michael R. Veall, 2006. "The Top Shares of Older Earners in Canada," Quantitative Studies in Economics and Population Research Reports 408, McMaster University. [Downloadable!]
    Other versions:
  4. repec:bep:eaptop:v:4:y:2004:i:1:p:1277-1277 is not listed on IDEAS
  5. Courtney Coile, 2003. "Health Shocks And Couples' Labor Supply Decisions," Working Papers, Center for Retirement Research at Boston College 2003-08, Center for Retirement Research. [Downloadable!]
  6. Michael Baker & Jonathan Gruber & Kevin Milligan, 2001. "The Retirement Incentive Effects of Canada's Income Security Programs," Social and Economic Dimensions of an Aging Population Research Papers 65, McMaster University. [Downloadable!]
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  7. Shelly J. Lundberg & Jennifer Ward-Batts, 2000. "Saving for Retirement: Household Bargaining and Household Net Worth," Econometric Society World Congress 2000 Contributed Papers 1414, Econometric Society. [Downloadable!]
    Other versions:
  8. Mark Stabile, 2004. "Payroll Taxes and the Decision to be Self-Employed," Asia-Pacific Financial Markets, Springer, vol. 11(1), pages 31-53, January. [Downloadable!] (restricted)
  9. Courtney Coile, 2003. "Retirement Incentives And Couples' Retirement Decisions," Working Papers, Center for Retirement Research at Boston College 2003-04, Center for Retirement Research. [Downloadable!]
  10. Jody Schimmel, 2006. "Men With Health Insurance and the Women Who Love Them: the Effect of a Husband's Retirement on His Wife's Health Insurance Coverage," Working Papers wp131, University of Michigan, Michigan Retirement Research Center. [Downloadable!]
  11. Michael Baker & Emily Hanna & Jasmin Kantarevic, 2003. "The Married Widow: Marriage Penalties Matter!," NBER Working Papers 9782, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  12. Michael Baker & Jonathan Gruber & Kevin Milligan, 2003. "Simulating the Response to Reform of Canada's Income Security Programs," NBER Working Papers 9455, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  13. Hakola, Tuulia, 2002. "Alternative Approaches to Model Withdrawals from the Labour Market – A Literature Review," Working Paper Series 2003:4, Uppsala University, Department of Economics. [Downloadable!]
  14. Courtney C. Coile, 2004. "Health Shocks and Couples' Labor Supply Decisions," NBER Working Papers 10810, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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This page was last updated on 2009-11-13.

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