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Household Consumption at Retirement: A Regression Discontinuity Study on French Data

Author

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  • Moreau, Nicolas

    () (Université de la Réunion)

  • Stancanelli, Elena G. F.

    () (Paris Jourdan Sciences Economiques)

Abstract

Earlier literature has investigated the drop in household consumption upon retirement of the head of the household, the so-called "retirement consumption puzzle". Here, we expand on these studies by considering also retirement of the wife, thus distinguishing households in which the wife is a "housewife" from 'dual-earners'. We use a regression discontinuity approach to estimate the effect of each partner's retirement on household consumption. We use for the analysis data drawn from the French Consumer Budget Survey 2001 that collected two-week expenditure diaries. We find a significant and sizable drop in food and clothes expenditure upon retirement of the male partner. However, the drop in food expenditure is not robust to specification checks and it becomes statistically insignificant when dropping from the sample couples in which the wife is a housewife.

Suggested Citation

  • Moreau, Nicolas & Stancanelli, Elena G. F., 2013. "Household Consumption at Retirement: A Regression Discontinuity Study on French Data," IZA Discussion Papers 7709, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp7709
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    References listed on IDEAS

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    1. Michael D. Hurd & Susann Rohwedder, 2008. "The Retirement-Consumption Puzzle Actual Spending Change in Panel Data," Working Papers WR-563, RAND Corporation.
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    Citations

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    Cited by:

    1. Peter Eibich, 2014. "Understanding the Effect of Retirement on Health Using Regression Discontinuity Design," SOEPpapers on Multidisciplinary Panel Data Research 669, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. Kyureghian, Gayaneh & Soler, Louis-Georges, 2016. "Life Cycle Consumption of Food: Evidence from French Data," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 236785, Agricultural and Applied Economics Association.
    3. repec:eee:jhecon:v:54:y:2017:i:c:p:66-78 is not listed on IDEAS
    4. Li, Hongbin & Shi, Xinzheng & Wu, Binzhen, 2016. "The retirement consumption puzzle revisited: Evidence from the mandatory retirement policy in China," Journal of Comparative Economics, Elsevier, vol. 44(3), pages 623-637.
    5. Heller Sahlgren, Gabriel, 2016. "Retirement Blues," Working Paper Series 1114, Research Institute of Industrial Economics, revised 17 May 2017.
    6. Eibich, Peter, 2015. "Understanding the effect of retirement on health: Mechanisms and heterogeneity," Journal of Health Economics, Elsevier, vol. 43(C), pages 1-12.

    More about this item

    Keywords

    consumption; ageing; retirement; regression discontinuity;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • 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

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