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Spouses' Retirement and Hours of Work Outcomes : Evidence from Twofold Regression Discontinuity

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  • Elena Stancanelli

    () (CES - Centre d'économie de la Sorbonne - CNRS - Centre National de la Recherche Scientifique - UP1 - Université Panthéon-Sorbonne, OFCE - Observatoire Français des Conjonctures économiques - Institut d'Études Politiques [IEP] - Paris - Fondation Nationale des Sciences Politiques [FNSP], IZA - Institute for the Study of Labor - Institute for the Study of Labor)

Abstract

Earlier studies conclude that spouses time their retirement closely together. Here, we exploit early retirement age legislation to identify the effect of own and spousal retirement on spouses' hours of work. The sample for the analysis includes over 85000 French couples. We conclude that hours of work fall significantly upon own and partner's retirement, for both spouses. The own effect is dramatically large and equal to a drop in hours worked of 65 to 77 per cent while the cross effects are small, suggesting an average reduction of one or two hours per week upon spousal retirement.

Suggested Citation

  • Elena Stancanelli, 2012. "Spouses' Retirement and Hours of Work Outcomes : Evidence from Twofold Regression Discontinuity," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00755648, HAL.
    • Handle: RePEc:hal:cesptp:halshs-00755648
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00755648
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    References listed on IDEAS

    as
    1. Michael Baker, 2002. "The Retirement Behavior of Married Couples: Evidence from the Spouse's Allowance," Journal of Human Resources, University of Wisconsin Press, vol. 37(1), pages 1-34.
    2. Blau, David M, 1998. "Labor Force Dynamics of Older Married Couples," Journal of Labor Economics, University of Chicago Press, vol. 16(3), pages 595-629, July.
    3. David S. Lee & Thomas Lemieux, 2010. "Regression Discontinuity Designs in Economics," Journal of Economic Literature, American Economic Association, vol. 48(2), pages 281-355, June.
    4. van Soest, A.H.O. & Stancanelli, E.G.F., 2010. "Does Income Taxation Affect Partners’ Household Chores?," Discussion Paper 2010-76, Tilburg University, Center for Economic Research.
    5. Wilbert van der Klaauw, 2008. "Regression-Discontinuity Analysis: A Survey of Recent Developments in Economics," LABOUR, CEIS, vol. 22(2), pages 219-245, June.
    6. Stancanelli, Elena G.F., 2008. "Evaluating the impact of the French tax credit on the employment rate of women," Journal of Public Economics, Elsevier, vol. 92(10-11), pages 2036-2047, October.
    7. Alan L. Gustman & Thomas Steinmeier, 2009. "Integrating Retirement Models," NBER Working Papers 15607, National Bureau of Economic Research, Inc.
    8. Elena Stancanelli & Arthur Van Soest, 2012. "Joint Leisure Before and After Retirement : a double Regression Discontinuity Approach," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00768901, HAL.
    9. Imbens, Guido W. & Lemieux, Thomas, 2008. "Regression discontinuity designs: A guide to practice," Journal of Econometrics, Elsevier, vol. 142(2), pages 615-635, February.
    10. Elena Stancanelli & Arthur Van Soest, 2012. "Retirement and Home Production: A Regression Discontinuity Approach," American Economic Review, American Economic Association, vol. 102(3), pages 600-605, May.
    11. Jean-Olivier Hairault & Francois Langot & Thepthida Sopraseuth, 2010. "Distance to Retirement and Older Workers' Employment: The Case for Delaying the Retirement Age," Journal of the European Economic Association, MIT Press, vol. 8(5), pages 1034-1076, September.
    12. Antoine Bommier & Thierry Magnac & Muriel Roger, 2000. "Le marché du travail à l’approche de la retraite : évolutions en France entre 1982 et 1999," Research Unit Working Papers 0211, Laboratoire d'Economie Appliquee, INRA.
    13. Gustman, Alan L & Steinmeier, Thomas L, 2000. "Retirement in Dual-Career Families: A Structural Model," Journal of Labor Economics, University of Chicago Press, vol. 18(3), pages 503-545, July.
    14. Kanika Kapur & Jeannette Rogowski, 2007. "The Role of Health Insurance in Joint Retirement among Married Couples," ILR Review, Cornell University, ILR School, vol. 60(3), pages 397-407, April.
    15. Didier Blanchet & Louis-Paul Pele, 1999. "Social Security and Retirement in France," NBER Chapters,in: Social Security and Retirement around the World, pages 101-133 National Bureau of Economic Research, Inc.
    16. Kanika Kapur & Jeannette Rogowski, 2007. "The role of health insurance in joint retirement among married couples," Open Access publications 10197/257, School of Economics, University College Dublin.
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    Cited by:

    1. Laura Hospido, 2015. "Pension reform and couples' joint retirement decisions," IZA World of Labor, Institute for the Study of Labor (IZA), pages 142-142, April.
    2. Atalay, Kadir & Barrett, Garry F., 2016. "Pension Incentives and the Retirement Decisions of Couples," IZA Discussion Papers 10013, Institute for the Study of Labor (IZA).
    3. Johnsen, Julian V. & Vaage, Kjell, 2015. "Spouses’ retirement and the take-up of disability pension," Working Papers in Economics 03/15, University of Bergen, Department of Economics.
    4. Andries de Grip & Didier Fouarge & Raymond Montizaan, 2013. "How Sensitive are Individual Retirement Expectations to Raising the Retirement Age?," De Economist, Springer, vol. 161(3), pages 225-251, September.
    5. Laura Hospido & Gema Zamarro, 2014. "Retirement patterns of couples in Europe," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-18, December.

    More about this item

    Keywords

    Ageing; retirement; regression discontinuity; policy evaluation; Economie des séniors; évaluation des politiques publiques;

    JEL classification:

    • 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
    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation

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