Household Consumption at Retirement: A Regression Discontinuity Study on French
AbstractEarlier 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 InfoPaper provided by Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne in its series Documents de travail du Centre d'Economie de la Sorbonne with number 13072.
Length: 35 pages
Date of creation: Oct 2013
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Consumption; ageing; retirement; regression discontinuity.;
Find related papers by JEL classification:
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- 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
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