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Retirement Patterns of Couples in Europe

Author

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  • Hospido, Laura

    () (Bank of Spain)

  • Zamarro, Gema

    () (University of Southern California)

Abstract

In this paper we study the retirement patterns of couples in a multi-country setting using data from the Survey of Health, Aging and Retirement in Europe. In particular we test whether women's (men's) transitions out of the labor force are directly related to the actual realization of their husbands' (wives') transition, using the institutional variation in country-specific early and full statutory retirement ages to instrument the latter. Exploiting the discontinuities in retirement behavior across countries, we find a significative joint retirement effect for women of 21 percentage points. For men, the estimated effect is insignificant. Our empirical strategy allows us to give a causal interpretation to the effect we estimate. In addition, this effect has important implications for policy analysis.

Suggested Citation

  • Hospido, Laura & Zamarro, Gema, 2014. "Retirement Patterns of Couples in Europe," IZA Discussion Papers 7926, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp7926
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    References listed on IDEAS

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    1. Erich Battistin & Agar Brugiavini & Enrico Rettore & Guglielmo Weber, 2009. "The Retirement Consumption Puzzle: Evidence from a Regression Discontinuity Approach," American Economic Review, American Economic Association, pages 2209-2226.
    2. Bo Honoré & Áureo de Paula, 2011. "Interdependent Durations in Joint Retirement," Working Papers, Center for Retirement Research at Boston College wp2011-5, Center for Retirement Research, revised Feb 2011.
    3. Michaud, Pierre-Carl & Vermeulen, Frederic, 2004. "A Collective Retirement Model: Identification and Estimation in the Presence of Externalities," IZA Discussion Papers 1294, Institute for the Study of Labor (IZA).
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    5. Donna B. Gilleskie & David M. Blau, 2006. "Health insurance and retirement of married couples," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(7), pages 935-953.
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    Cited by:

    1. repec:spr:jlabre:v:38:y:2017:i:4:d:10.1007_s12122-017-9258-3 is not listed on IDEAS
    2. repec:bpj:bejeap:v:17:y:2017:i:2:p:21:n:6 is not listed on IDEAS
    3. 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.
    4. repec:eee:joecag:v:9:y:2017:i:c:p:1-13 is not listed on IDEAS
    5. Marco Bertoni & Giorgio Brunello, 2014. "Pappa Ante Portas: The Retired Husband Syndrome in Japan," "Marco Fanno" Working Papers 0182, Dipartimento di Scienze Economiche "Marco Fanno".
    6. Ciani, Emanuele, 2016. "Retirement, pension eligibility and home production," Labour Economics, Elsevier, vol. 38(C), pages 106-120.
    7. repec:eee:hapoch:v1_457 is not listed on IDEAS
    8. Boman, Anders, 2015. "Spending time together? Effects on the retirement decision from partner’s labour market status," Working Papers in Economics 618, University of Gothenburg, Department of Economics.
    9. Godard, Mathilde, 2016. "Gaining weight through retirement? Results from the SHARE survey," Journal of Health Economics, Elsevier, vol. 45(C), pages 27-46.
    10. Monika Riedel & Helmut Hofer & Birgit Wögerbauer, 2015. "Determinants for the transition from work into retirement in Europe," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-19, December.

    More about this item

    Keywords

    social security incentives; joint retirement;

    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • D10 - Microeconomics - - Household Behavior - - - General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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