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Household Consumption at Retirement: A Regression Discontinuity Study on French Data

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  • Moreau, Nicolas

    ()
    (Université de la Réunion)

  • Stancanelli, Elena G. F.

    ()
    (CNRS, Sorbonne Economics Research Center (CES))

Abstract

Earlier literature has investigated the drop in household consumption upon retirement of the head of the household, the so-called "retirement consumption puzzle". Here, we expand on these studies by considering also retirement of the wife, thus distinguishing households in which the wife is a "housewife" from 'dual-earners'. We use a regression discontinuity approach to estimate the effect of each partner's retirement on household consumption. We use for the analysis data drawn from the French Consumer Budget Survey 2001 that collected two-week expenditure diaries. We find a significant and sizable drop in food and clothes expenditure upon retirement of the male partner. However, the drop in food expenditure is not robust to specification checks and it becomes statistically insignificant when dropping from the sample couples in which the wife is a housewife.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7709.

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Length: 36 pages
Date of creation: Oct 2013
Date of revision:
Handle: RePEc:iza:izadps:dp7709

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Keywords: consumption; ageing; retirement; regression discontinuity;

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References

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Cited by:
  1. Eibich, P.;, 2014. "Understanding the effect of retirement on health using Regression Discontinuity Design," Health, Econometrics and Data Group (HEDG) Working Papers 14/10, HEDG, c/o Department of Economics, University of York.

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