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Postponing retirement age and labor force participation: the role of family transfers

Author

Listed:
  • Pascal Belan
  • Pierre-Jean Messe
  • François-Charles Wolff

Abstract

In this paper, we examine the consequences of delaying retirement in an overlapping generations model with domestic production and parental transfers in the form of grandchild care. We show that a change in age at retirement influences the employment rates of both the young and the old. This interdependency stems from the provision of family transfers. Postponing retirement may increase time devoted to grandchild care transfers, which allows the young to work more on the labor market. We then study the conditions under which this positive family externality holds. Finally, using numerical simulations, we assess the consequences of delaying retirement on labor participation and account for public policy implications. JEL Classification: J26.

Suggested Citation

  • Pascal Belan & Pierre-Jean Messe & François-Charles Wolff, 2010. "Postponing retirement age and labor force participation: the role of family transfers," Recherches économiques de Louvain, De Boeck Université, vol. 76(4), pages 347-370.
    • Handle: RePEc:cai:reldbu:rel_764_0347
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    Cited by:

    1. Pelin Akyol & Zeynep Yılmaz, 2024. "Effects of Grandmothers' Proximity on Mothers' Labour Force Participation," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 86(5), pages 1122-1162, October.
    2. Compton, Janice & Pollak, Robert A., 2014. "Family proximity, childcare, and women’s labor force attachment," Journal of Urban Economics, Elsevier, vol. 79(C), pages 72-90.
    3. Pierre-Jean Messe & Eva Moreno-Galbis & Fran ois-Charles Wolf, 2014. "Retirement intentions in the presence of technological change: Theory and evidence from France," TEPP Working Paper 2014-04, TEPP.
    4. Nguyen, Quynh-Nga, 2024. "Intergenerational time transfer, retirement and public pensions," The Journal of the Economics of Ageing, Elsevier, vol. 27(C).
    5. admin, clsrn, 2011. "The Mom Effect: Family Proximity and the Labour Force Status of Women in Canada," CLSSRN working papers clsrn_admin-2011-30, Vancouver School of Economics, revised 28 Nov 2011.
    6. Belan Pascal & Moussault Erwan, 2020. "Inheritance Taxation in a Model with Intergenerational Time Transfers," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 20(1), pages 1-19, January.
    7. Janice Compton, 2015. "Family proximity and the labor force status of women in Canada," Review of Economics of the Household, Springer, vol. 13(2), pages 323-358, June.

    More about this item

    Keywords

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    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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