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Retirement in Non-Cooperative and Cooperative Families

Author

Listed:
  • Hærnes, Erik

    () (The Ragnar Frisch Centre for Economic Research)

  • Jia, Zhiyang

    (Dept. of Economics, University of Oslo)

  • Strøm, Steinar

    () (Dept. of Economics, University of Oslo)

Abstract

Models for non-cooperative as well as cooperative behavior of families are estimated on data from Norway from 1994 to 1998. The models aim at explaining labor supply behavior of married couples the first five months after the husband becomes eligible for early retirement, while the wife is not eligible. Estimates and predictions derived from the different models are compared. Econometric tests find that the Stackelberg model with the male as the leader is the best. Simulations with the estimated models show that taxing pension income the same way as labor income would reduce the propensity to retire early considerably.

Suggested Citation

  • Hærnes, Erik & Jia, Zhiyang & Strøm, Steinar, 2005. "Retirement in Non-Cooperative and Cooperative Families," Memorandum 15/2006, Oslo University, Department of Economics.
  • Handle: RePEc:hhs:osloec:2006_015
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    References listed on IDEAS

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    Cited by:

    1. repec:eme:ceapzz:s0573-855520140000293006 is not listed on IDEAS
    2. Iskhakov, Fedor, 2008. "Dynamic Programming Model of Health and Retirement," Memorandum 03/2008, Oslo University, Department of Economics.
    3. Ugo Colombino & Erik Hernæs & Marilena Locatelli & Steinar Strøm, 2009. "Towards an actuarially fair pension system in Norway," CHILD Working Papers wp14_09, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
    4. Zhiyang Jia, 2005. "Retirement Behavior of Working Couples in Norway. A Dynamic Programming Approach," Discussion Papers 405, Statistics Norway, Research Department.
    5. Jia, Zhiyang, 2003. "A Mixture Model of Household Retirement Choice," Memorandum 04/2003, Oslo University, Department of Economics.
    6. Zhiyang Jia, 2005. "Labor Supply of Retiring Couples and Heterogeneity in Household Decision-Making Structure," Review of Economics of the Household, Springer, vol. 3(2), pages 215-233, June.
    7. Rolf Aaberge & Ugo Colombino, 2014. "Labour Supply Models," Contributions to Economic Analysis,in: Handbook of Microsimulation Modelling, volume 127, pages 167-221 Emerald Publishing Ltd.
    8. Nordberg, Morten, 2007. "The Total Tax on Labour Income," Memorandum 05/2007, Oslo University, Department of Economics.
    9. Zhiyang Jia, 2005. "Spousal Influence on Early Retirement Behavior," Discussion Papers 406, Statistics Norway, Research Department.

    More about this item

    Keywords

    family labor supply; retirement; econometric models; policy simulations;

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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