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Joint Retirement of Couples: Evidence from a Natural Experiment

Author

Listed:
  • Bloemen, Hans

    (Vrije Universiteit Amsterdam)

  • Hochguertel, Stefan

    (Vrije Universiteit Amsterdam)

  • Zweerink, Jochem

    (Vrije Universiteit Amsterdam)

Abstract

We estimate and explain the impact of early retirement of husbands on their wives’ probability to retire within one year, using administrative micro panel data that cover the whole Dutch population. We employ an instrumental variable approach in which the retirement choice of husbands is instrumented with eligibility rules for generous early retirement benefits that were temporarily and unexpectedly available to them. We find that early retirement opportunities of husbands increased the wives' probability to retire by 24.6 percentage points. This is a strong, and robust effect. Partly, wives respond to husbands' choices at ages when they are themselves likely eligible for early retirement programs.

Suggested Citation

  • Bloemen, Hans & Hochguertel, Stefan & Zweerink, Jochem, 2015. "Joint Retirement of Couples: Evidence from a Natural Experiment," IZA Discussion Papers 8861, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8861
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    Cited by:

    1. Cetin, Sefane & Jousten, Alain, 2022. "Retirement Decision of Belgian Couples and the Impact of the Social Security System," LIDAM Discussion Papers CORE 2022024, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    2. Lindeboom, Maarten & Montizaan, Raymond, 2018. "Pension Reform: Disentangling Retirement and Savings Responses," Research Memorandum 019, Maastricht University, Graduate School of Business and Economics (GSBE).
    3. 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".
    4. Adriaan Kalwij & Arie Kapteyn & Klaas de Vos, 2018. "Why Are People Working Longer in the Netherlands?," NBER Chapters, in: Social Security Programs and Retirement around the World: Working Longer, pages 179-204, National Bureau of Economic Research, Inc.
    5. Lindeboom, Maarten & Montizaan, Raymond, 2020. "Disentangling retirement and savings responses," Journal of Public Economics, Elsevier, vol. 192(C).
    6. Berangere Legendre & Annaig-C. Pedrant & Mareva Sabatier, 2018. "Should I stay or should I go? An econometric analysis of retirement decisions by couples," Applied Economics, Taylor & Francis Journals, vol. 50(53), pages 5814-5829, November.
    7. Sefane Cetin, 2021. "Joint Retirement: Evidence on the Heterogeneity of Spousal Effects," LIDAM Discussion Papers IRES 2021031, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).

    More about this item

    Keywords

    instruments; couples; retirement;
    All these keywords.

    JEL classification:

    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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