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Spouses' Retirement and Hours Outcomes: Evidence from Twofold Regression Discontinuity with Differences-in-Differences

  • Stancanelli, Elena G. F.

    ()

    (CNRS, Sorbonne Economics Research Center (CES))

Earlier studies conclude that spouses' retirement strategies are not independent from each other and that policies affecting individuals in a couple are also likely to affect the economic behaviour of their partner. In this study, we exploit retirement age legislation in France as well as a retirement policy change to identify the effect of own and spousal retirement on spouses' hours. To this end, we use a Fuzzy Regression Discontinuity approach combined with Differences in Differences, for both spouses. The data for the analysis are drawn from French Labour Surveys pooled over thirteen years. The sample for the analysis includes over 85,000 dual-earner couples with spouses aged 50 to 70. We find evidence of large and significant jumps in the own retirement probability at the legal early retirement age for both men and women in a couple. We also conclude that the 1993 reform reduced significantly the probability of retirement at the early retirement age for married men while the effect was not significant for married women. Husbands' retirement probability increases significantly when the wife reaches early retirement age while her retirement probability is not responsive to his early retirement age. We conclude that hours fall significantly upon own and partner's retirement for both spouses. On average, her hours fall by 2.7 per cent when he retires while his hours fall by 5 per cent when she retires, implying an average reduction of one hour per week for women and two hours for men if their spouse retires.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6791.

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Length: 41 pages
Date of creation: Aug 2012
Date of revision:
Handle: RePEc:iza:izadps:dp6791
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  1. Elena Stancanelli & Arthur Van Soest, 2011. "Retirement and home production : A regression discontinuity approach," Documents de Travail de l'OFCE 2011-28, Observatoire Francais des Conjonctures Economiques (OFCE).
  2. Didier Blanchet & Louis-Paul Pele, 1997. "Social Security and Retirement in France," NBER Working Papers 6214, National Bureau of Economic Research, Inc.
  3. Kanika Kapur & Jeannette Rogowski, 2007. "The Role of Health Insurance in Joint Retirement among Married Couples," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 60(3), pages 397-407, April.
  4. Wilbert van der Klaauw, 2008. "Regression-Discontinuity Analysis: A Survey of Recent Developments in Economics," LABOUR, CEIS, vol. 22(2), pages 219-245, 06.
  5. 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.
  6. Agar Brugiavini & Erich Battistin, & Enrico Rettore & Guglielmo Weber, 2007. "The Retirement Consumption Puzzle: Evidence from a Regression Discontinuity Approach," Working Papers 2007_27, Department of Economics, University of Venice "Ca' Foscari".
  7. Guido Imbens & Thomas Lemieux, 2007. "Regression Discontinuity Designs: A Guide to Practice," NBER Working Papers 13039, National Bureau of Economic Research, Inc.
  8. 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.
  9. 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 503-45, July.
  10. Arthur Van Soest & Elena Stancanelli, 2010. "Does income taxation affect partners’ household chores?," Documents de Travail de l'OFCE 2010-12, Observatoire Francais des Conjonctures Economiques (OFCE).
  11. Stancanelli, Elena G. F. & van Soest, Arthur, 2012. "Joint Leisure Before and After Retirement: A Double Regression Discontinuity Approach," IZA Discussion Papers 6698, Institute for the Study of Labor (IZA).
  12. Elena Stancanelli, 2007. "Evaluating the Impact of the French tax credit on the employment rate of women," Sciences Po publications N°2007-33, Sciences Po.
  13. David S. Lee & Thomas Lemieux, 2009. "Regression Discontinuity Designs In Economics," Working Papers 1118, Princeton University, Department of Economics, Industrial Relations Section..
  14. Michael Baker, 2003. "The Retirement Behavior of Married Couples: Evidence From The Spouse's Allowance," Working Papers 993, University of California, Davis, Department of Economics.
  15. 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.
  16. Wilbert van der Klaauw, 2002. "Estimating the Effect of Financial Aid Offers on College Enrollment: A Regression-Discontinuity Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(4), pages 1249-1287, November.
  17. Alan L. Gustman & Thomas Steinmeier, 2009. "Integrating Retirement Models," NBER Working Papers 15607, National Bureau of Economic Research, Inc.
  18. François Bourguignon & Thierry Magnac, 1990. "Labor Supply and Taxation in France," Journal of Human Resources, University of Wisconsin Press, vol. 25(3), pages 358-389.
  19. 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, 09.
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