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Time devoted to home production and retirement in couples: A panel data analysis

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  • Bonsang, Eric
  • van Soest, Arthur

Abstract

We analyse the effects of retirement of one partner on time devoted to home production by both partners in a couple. Using longitudinal data on couples in Germany, we control for fixed household specific effects and allow for endogeneity of retirement using both a regression discontinuity approach and variation in the early and full retirement age across cohorts and with labour market history. Furthermore, we separately estimate the effect of retirement and the effect of lay-off due to an exogenous shock (i.e. plant closure) for each spouse. For both men and women, a transition from work to retirement significantly increases the amount of their own home production. Similar effects are found for other (layoff induced) exits from work. We find much smaller negative cross-effects of retirement or other exits from work on time spent on home production done by the male partner; the effect of the husband's retirement on the wife's home production is not statistically significant.

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  • Bonsang, Eric & van Soest, Arthur, 2020. "Time devoted to home production and retirement in couples: A panel data analysis," Labour Economics, Elsevier, vol. 65(C).
    • Handle: RePEc:eee:labeco:v:65:y:2020:i:c:s0927537120300166
    DOI: 10.1016/j.labeco.2020.101810
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    Cited by:

    1. Byrne, Dominic & Kwak, Do Won & Tang, Kam Ki & Yazbeck, Myra, 2023. "Spillover effects of retirement: Does health vulnerability matter?," Economics & Human Biology, Elsevier, vol. 48(C).
    2. Moghadam, Hamed Markazi & Puhani, Patrick & Tyrowicz, Joanna, 2023. "Pension Reforms and Couples' Labour Supply Decisions," Economics Working Paper Series 2304, University of St. Gallen, School of Economics and Political Science.
    3. Eibich, Peter & Lorenti, Angelo & Mosca, Irene, 2020. "Does Retirement Affect Voluntary Work Provision? Evidence from England, Ireland and the U.S," IZA Discussion Papers 13153, Institute of Labor Economics (IZA).
    4. Jim Been & Susann Rohwedder & Michael Hurd, 2021. "Households’ joint consumption spending and home production responses to retirement in the US," Review of Economics of the Household, Springer, vol. 19(4), pages 959-985, December.
    5. Eibich, Peter & Lorenti, Angelo & Mosca, Irene, 2022. "Does retirement affect voluntary work provision? Evidence from Europe and the U.S," Labour Economics, Elsevier, vol. 76(C).
    6. Kadir Atalay & Garry Barrett, 2022. "Retirement routes and the well-being of retirees," Empirical Economics, Springer, vol. 63(5), pages 2751-2784, November.
    7. Bhattacharya, Leena, 2023. "Time allocation of daughters-in-law and mothers-in-law in India: The role of education as bargaining power," GLO Discussion Paper Series 1343, Global Labor Organization (GLO).

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    More about this item

    Keywords

    Time allocation; Home production; Retirement; Couples;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J29 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Other
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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