Public Pension Programmes and the Retirement of Married Couples in Denmark
AbstractIn this paper we study the economic determinants of the joint retirement process of married couples. We propose a tractable dynamic discrete choice model for retirement decisions which allows for non-trivial saving behaviour. We estimate the model on a 1\% sample of Danish couples of potential retirement age drawn from a population-based administrative register. The introduction and subsequent reforms of a publicly financed early-retirement programme provide us with variation in the data to ensure identification of the the elasticities of participation/retirement with respect to income flows. Our estimates imply a significant asymmetry in the sensitivity of retirement behaviour of men and women with respect to variation in their own, or their spouse’s income flows.
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Bibliographic InfoPaper provided by Centre for Economic Research, Keele University in its series Keele Economics Research Papers with number KERP 2006/20.
Length: 35 pages
Date of creation: Oct 2006
Date of revision:
Note: The Danish Social Sciences Research Council (24-02-0064) and UK Economic and Social Research Council (RES-000-27-0200) provided funding. This paper has benefited from comments received from workshop participants in CAM Copenhagen, RES Nottingham and TAPES Uppsala, especially Martin Browning, Jim Poterba, Arthur Van Soest and Ian Walker. The usual disclaimer applies.
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Postal: Centre for Economic Research, Research Institute for Public Policy and Management, Keele University, Staffordshire ST5 5BG - United Kingdom
Other versions of this item:
- Bingley, Paul & Lanot, Gauthier, 2007. "Public pension programmes and the retirement of married couples in Denmark," Journal of Public Economics, Elsevier, vol. 91(10), pages 1878-1901, November.
- Paul Bingley & Gauthier Lanot, 2007. "Public pension programmes and the retirement of married couples in Denmark," NBER Chapters, in: Trans-Atlantic Public Economics Seminar (TAPES), Public Policy and Retirement, pages 1878-1901 National Bureau of Economic Research, Inc.
- J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
- H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
- C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
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