What happens to the husband’s retirement decision when the wife’s retirement incentives change?
AbstractSeveral studies have documented a strong correlation in the timing of spouses’ retirement decisions. However, considerably less is known about the causal impact of one spouse’s retirement incentives on the retirement decision of the other spouse. Before, but not after, 2001 broad categories of Swedish local government workers in female dominated occupations were entitled to retire with full pension benefits already at the age of 63. In this paper, we utilize this reform – together with a micro data set covering the total Swedish population – to estimate the effect of a change in the wife’s incentive on the husband’s retirement behavior. We document a sharp decrease in pension benefit withdrawals among 63 year old wives in the local government sector in the years following the reform. However, we do not find any evidence of a response among husbands. This finding is at odds with some earlier results in the literature.
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Bibliographic InfoPaper provided by Uppsala University, Department of Economics in its series Working Paper Series, Center for Fiscal Studies with number 2011:8.
Length: 37 pages
Date of creation: 11 Jul 2011
Date of revision:
Contact details of provider:
Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
Web page: http://www.nek.uu.se/
More information through EDIRC
Joint retirement; retirement age; occupational pensions;
Other versions of this item:
- Håkan Selin, 2012. "What Happens to the Husband's Retirement Decision when the Wife's Retirement Incentives Change?," CESifo Working Paper Series 3772, CESifo Group Munich.
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
This paper has been announced in the following NEP Reports:
- NEP-AGE-2011-08-22 (Economics of Ageing)
- NEP-ALL-2011-08-22 (All new papers)
- NEP-EUR-2011-08-22 (Microeconomic European Issues)
- NEP-LAB-2011-08-22 (Labour Economics)
- NEP-LMA-2011-08-22 (Labor Markets - Supply, Demand, & Wages)
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