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Labor Supply of Retiring Couples and Heterogeneity in Household Decision-Making Structure

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Abstract

This paper analyzes the labor market participation behavior of retiring couples in Norway. To account for the unobserved heterogeneity in decision-making structure within the household, I formulate a mixed model by assuming there are two types of households, the cooperative type and the non-cooperative type. I assume that non-cooperative households behave according to a Stackelberg game with the male as the leader, while cooperative households engage in a cooperative bargaining process. The estimation results show that more than half of the households are of the non-cooperative type.

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Bibliographic Info

Paper provided by Research Department of Statistics Norway in its series Discussion Papers with number 404.

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Date of creation: Feb 2005
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Handle: RePEc:ssb:dispap:404

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Keywords: household labor supply; retirement; unobserved heterogeneity; mixed model;

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Cited by:
  1. Meier, Volker & Rainer, Helmut, 2013. "Beyond Ramsey: Gender-Based Taxation with Non-Cooperative Couples," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79877, Verein für Socialpolitik / German Economic Association.
  2. John K. Dagsvik & Zhiyang Jia, 2006. "Labor Supply as a Choice among Latent Job Opportunities. A Practical Empirical Approach," Discussion Papers 481, Research Department of Statistics Norway.
  3. Shiko Maruyama, 2010. "Estimation of Finite Sequential Games," Discussion Papers 2010-22, School of Economics, The University of New South Wales.

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