Commuting costs and labor force retirement
AbstractThis paper studies whether the increase in home-workplace separation observed among U.S. older male workers in the last decades of the 20th century can partly account for earlier retirement. We first extend a conventional residential location-labor supply model in order to examine potential mechanisms linking commuting and retirement. After showing that, as a consequence of the urban residential equilibrium, it is possible that workers residing further from the workplace retire earlier, PSID data and an instrumental variables approach are combined in order to assess the nature and strength of the relation.
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Bibliographic InfoPaper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2008-19.
Length: 40 pages
Date of creation: Dec 2008
Date of revision:
Publication status: Published by Ivie
Retirement. Commuting. Instrumental variables.;
Find related papers by JEL classification:
- J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
- R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand
This paper has been announced in the following NEP Reports:
- NEP-AGE-2009-01-03 (Economics of Ageing)
- NEP-ALL-2009-01-03 (All new papers)
- NEP-LAB-2009-01-03 (Labour Economics)
- NEP-URE-2009-01-03 (Urban & Real Estate Economics)
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