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Couples' Retirement under Individual Pension Design: A Regression Discontinuity Study for France

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  • Stancanelli, Elena G. F.

    () (Paris School of Economics)

Abstract

Retirement policies are individually designed but the majority of people of retirement age live as couples. We estimate the effects of a French pension reform on spouses' employment decisions. We use labor-force survey data, pooled over different years, on fifty thousand French couples and apply a regression discontinuity framework, also controlling for couple's unobserved heterogeneity. We conclude that the reform immediately reduced both spouses' retirement probability. The wife's retirement probability also drops by 1 to 4 percentage points if the husband is hit by the reform, and vice-versa. Instrumenting spousal retirement with legal retirement age, own retirement probability rises by 2 to 6 percentage points upon spousal retirement.

Suggested Citation

  • Stancanelli, Elena G. F., 2016. "Couples' Retirement under Individual Pension Design: A Regression Discontinuity Study for France," IZA Discussion Papers 10322, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp10322
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    References listed on IDEAS

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    More about this item

    Keywords

    policy evaluation; retirement; ageing;

    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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