Spouses' Retirement and Hours Outcomes: Evidence from Twofold Regression Discontinuity with Differences-in-Differences
Abstract
Earlier studies conclude that spouses' retirement strategies are not independent from each other and that policies affecting individuals in a couple are also likely to affect the economic behaviour of their partner. In this study, we exploit retirement age legislation in France as well as a retirement policy change to identify the effect of own and spousal retirement on spouses' hours. To this end, we use a Fuzzy Regression Discontinuity approach combined with Differences in Differences, for both spouses. The data for the analysis are drawn from French Labour Surveys pooled over thirteen years. The sample for the analysis includes over 85,000 dual-earner couples with spouses aged 50 to 70. We find evidence of large and significant jumps in the own retirement probability at the legal early retirement age for both men and women in a couple. We also conclude that the 1993 reform reduced significantly the probability of retirement at the early retirement age for married men while the effect was not significant for married women. Husbands' retirement probability increases significantly when the wife reaches early retirement age while her retirement probability is not responsive to his early retirement age. We conclude that hours fall significantly upon own and partner's retirement for both spouses. On average, her hours fall by 2.7 per cent when he retires while his hours fall by 5 per cent when she retires, implying an average reduction of one hour per week for women and two hours for men if their spouse retires.Download Info
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6791.Length: 41 pages
Date of creation: Aug 2012
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Handle: RePEc:iza:izadps:dp6791
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Related research
Keywords: ageing; retirement; regression discontinuity; policy evaluation;Find related papers by JEL classification:
- J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
- C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
- C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
- D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
This paper has been announced in the following NEP Reports:
- NEP-AGE-2012-09-30 (Economics of Ageing)
- NEP-ALL-2012-09-30 (All new papers)
- NEP-DEM-2012-09-30 (Demographic Economics)
- NEP-LAB-2012-09-30 (Labour Economics)
- NEP-LMA-2012-09-30 (Labor Markets - Supply, Demand, & Wages)
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Stancanelli, Elena G. F. & van Soest, Arthur, 2012.
"Joint Leisure Before and After Retirement: A Double Regression Discontinuity Approach,"
IZA Discussion Papers
6698, Institute for the Study of Labor (IZA).
- Elena Stancanelli & Arthur Van Soest, 2012. "Jointleisure before and after retirement :A double regression discontinuity approach," Documents de Travail de l'OFCE 2012-23, Observatoire Francais des Conjonctures Economiques (OFCE).
- Elena Stancanelli & Arthur Van Soest, 2012. "Joint Leisure Before and After Retirement : a double Regression Discontinuity Approach," Documents de travail du Centre d'Economie de la Sorbonne 12085, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
- Sahlgren, Gabriel H., 2012. "Work ‘til You Drop: Short- and Longer-Term Health Effects of Retirement in Europe," Working Paper Series 928, Research Institute of Industrial Economics.
- Elena Stancanelli & Arthur Van Soest, 2012. "Joint Leisure Before and After Retirement : a double Regression Discontinuity Approach," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00768901, HAL.
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