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The Effects of a Retirement Age Reform on Couples' Labor Supply Decisions

Author

Listed:
  • Edith Sand

    (Bank of Israel)

  • Shirlee Lichtman-Sadot

    (Ben-Gurion University of the Negev)

Abstract

This paper estimates how a pension reform in Israel that raised both men's and women's ages of retirement benefits concurrently affected spousal labor supply decisions. We utilize detailed administrative data in order to estimate spouse retirement decisions and to understand their interdependencies. We find that one's own retirement age deferral increases their own labor supply. However, spillover effects differ by gender. While for men, labor supply does not depend on their wife’s retirement age deferral, for women, postponing their husband’s retirement age delays their own retirement if their own retirement age has not been postponed.

Suggested Citation

  • Edith Sand & Shirlee Lichtman-Sadot, 2019. "The Effects of a Retirement Age Reform on Couples' Labor Supply Decisions," Bank of Israel Working Papers 2019.13, Bank of Israel.
    • Handle: RePEc:boi:wpaper:2019.13
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    File URL: https://boiwebrepec.azurefd.net/RePEc/boi/wpaper/WP_2019.13.pdf
    File Function: First version, 2019
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    Cited by:

    1. 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.

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