IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp9156.html
   My bibliography  Save this paper

Home Production and Retirement in Couples: A Panel Data Analysis

Author

Listed:
  • Bonsang, Eric

    (Université Paris-Dauphine)

  • van Soest, Arthur

    (Tilburg University)

Abstract

We analyse the effects of retirement of one partner on home production by both partners in a couple. Using longitudinal data from Germany on couples, we control for fixed household specific effects to address the concern that retirement decisions are correlated with unobserved characteristics that also affect home production. For males and females, we find that own retirement significantly increases the amounts of home production. There are negative cross-effects of retirement on home production done by the partner. The fall in household income at retirement of one of the partners is largely compensated by an increase in total household production.

Suggested Citation

  • Bonsang, Eric & van Soest, Arthur, 2015. "Home Production and Retirement in Couples: A Panel Data Analysis," IZA Discussion Papers 9156, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp9156
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp9156.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    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, vol. 99(5), pages 2209-2226, December.
    2. Banks, James & Blundell, Richard & Tanner, Sarah, 1998. "Is There a Retirement-Savings Puzzle?," American Economic Review, American Economic Association, vol. 88(4), pages 769-788, September.
    3. Bonsang, Eric & Klein, Tobias J., 2012. "Retirement and subjective well-being," Journal of Economic Behavior & Organization, Elsevier, vol. 83(3), pages 311-329.
    4. Joachim Frick & Markus Grabka & Olaf Groh-Samberg, 2012. "The impact of home production on economic inequality in Germany," Empirical Economics, Springer, vol. 43(3), pages 1143-1169, December.
    5. Mazzonna, Fabrizio & Peracchi, Franco, 2012. "Ageing, cognitive abilities and retirement," European Economic Review, Elsevier, vol. 56(4), pages 691-710.
    6. Hamermesh, Daniel S, 1984. "Consumption during Retirement: The Missing Link in the Life Cycle," The Review of Economics and Statistics, MIT Press, vol. 66(1), pages 1-7, February.
    7. Elena Stancanelli & Arthur Van Soest, 2012. "Retirement and Home Production: A Regression Discontinuity Approach," American Economic Review, American Economic Association, vol. 102(3), pages 600-605, May.
    8. Schwerdt, Guido, 2005. "Why does consumption fall at retirement? Evidence from Germany," Economics Letters, Elsevier, vol. 89(3), pages 300-305, December.
    9. Michael D. Hurd & Susann Rohwedder, 2008. "The Retirement-Consumption Puzzle Actual Spending Change in Panel Data," Working Papers WR-563, RAND Corporation.
    10. Bonsang, Eric & Adam, Stéphane & Perelman, Sergio, 2012. "Does retirement affect cognitive functioning?," Journal of Health Economics, Elsevier, vol. 31(3), pages 490-501.
    11. David A. Wise, 2009. "Developments in the Economics of Aging," NBER Books, National Bureau of Economic Research, Inc, number wise09-1, March.
    12. Michael D. Hurd, 1990. "The Joint Retirement Decision of Husbands and Wives," NBER Chapters, in: Issues in the Economics of Aging, pages 231-258, National Bureau of Economic Research, Inc.
    13. Michael D. Hurd & Susann Rohwedder, 2008. "The Retirement Consumption Puzzle: Actual Spending Change in Panel Data," NBER Working Papers 13929, National Bureau of Economic Research, Inc.
    14. Alan L. Gustman & Thomas Steinmeier, 2009. "Integrating Retirement Models," NBER Working Papers 15607, National Bureau of Economic Research, Inc.
    15. Susann Rohwedder & Robert J. Willis, 2010. "Mental Retirement," Journal of Economic Perspectives, American Economic Association, vol. 24(1), pages 119-138, Winter.
    16. Coe, Norma B. & Zamarro, Gema, 2011. "Retirement effects on health in Europe," Journal of Health Economics, Elsevier, vol. 30(1), pages 77-86, January.
    17. Coe, Norma B. & Zamarro, Gema, 2011. "Retirement effects on health in Europe," Journal of Health Economics, Elsevier, pages 77-86.
    18. Mark Aguiar & Erik Hurst, 2005. "Consumption versus Expenditure," Journal of Political Economy, University of Chicago Press, vol. 113(5), pages 919-948, October.
    19. Jens Bonke, 2005. "Paid Work and Unpaid Work: Diary Information Versus Questionnaire Information," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 70(3), pages 349-368, February.
    20. Erik Hurst, 2008. "The Retirement of a Consumption Puzzle," NBER Working Papers 13789, National Bureau of Economic Research, Inc.
    21. David A. Wise, 1990. "Issues in the Economics of Aging," NBER Books, National Bureau of Economic Research, Inc, number wise90-1, March.
    22. Mark Aguiar & Erik Hurst, 2007. "Life-Cycle Prices and Production," American Economic Review, American Economic Association, vol. 97(5), pages 1533-1559, December.
    23. Harley Frazis & Jay Stewart, 2011. "How does household production affect measured income inequality?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(1), pages 3-22, January.
    24. 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 503-545, July.
    25. David Roodman, 2009. "Mixed-process models with cmp," DC09 Stata Conference 11, Stata Users Group.
    26. David Roodman, 2009. "Estimating Fully Observed Recursive Mixed-Process Models with cmp," Working Papers 168, Center for Global Development.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eibich, Peter & Siedler, Thomas, 2020. "Retirement, intergenerational time transfers, and fertility," European Economic Review, Elsevier, vol. 124(C).
    2. Bertoni, Marco & Brunello, Giorgio, 2017. "Pappa Ante Portas: The effect of the husband's retirement on the wife's mental health in Japan," Social Science & Medicine, Elsevier, vol. 175(C), pages 135-142.
    3. Kadir Atalay & Garry F. Barrett & Anita Staneva, 2020. "The effect of retirement on home production: evidence from Australia," Review of Economics of the Household, Springer, vol. 18(1), pages 117-139, March.
    4. Ciani, Emanuele, 2016. "Retirement, pension eligibility and home production," Labour Economics, Elsevier, vol. 38(C), pages 106-120.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bonsang, Eric & van Soest, Arthur, 2020. "Time devoted to home production and retirement in couples: A panel data analysis," Labour Economics, Elsevier, vol. 65(C).
    2. Nicolas Moreau & Elena Stancanelli, 2015. "Household Consumption at Retirement : A Regression Discontinuity Study on French Data," Annals of Economics and Statistics, GENES, issue 117-118, pages 253-276.
    3. Nicolas Moreau & Elena Stancanelli, 2013. "Household Consumption at Retirement: A Regression Discontinuity Study on French," Documents de travail du Centre d'Economie de la Sorbonne 13072, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    4. Elena Stancanelli & Arthur Van Soest, 2012. "Retirement and Home Production: A Regression Discontinuity Approach," American Economic Review, American Economic Association, vol. 102(3), pages 600-605, May.
    5. Kadir Atalay & Garry F. Barrett & Anita Staneva, 2020. "The effect of retirement on home production: evidence from Australia," Review of Economics of the Household, Springer, vol. 18(1), pages 117-139, March.
    6. Stancanelli, Elena G. F. & van Soest, Arthur, 2012. "Joint Leisure Before and After Retirement: A Double Regression Discontinuity Approach," IZA Discussion Papers 6698, Institute of Labor Economics (IZA).
    7. Claudio Lucifora & Daria Vigani, 2018. "Health care utilization at retirement: The role of the opportunity cost of time," Health Economics, John Wiley & Sons, Ltd., vol. 27(12), pages 2030-2050, December.
    8. Jim Been & Susann Rohwedder & Michael Hurd, 2021. "Households’ joint consumption spending and home production responses to retirement in the US," Review of Economics of the Household, Springer, vol. 19(4), pages 959-985, December.
    9. Daniel Burkhard, 2015. "Consumption smoothing at retirement: average and quantile treatment effects in the regression discontinuity design," Diskussionsschriften dp1512, Universitaet Bern, Departement Volkswirtschaft.
    10. Chen, Qihui & Deng, Tinghe & Bai, Junfei & He, Xiurong, 2017. "Understanding the retirement-consumption puzzle through the lens of food consumption-fuzzy regression-discontinuity evidence from urban China," Food Policy, Elsevier, vol. 73(C), pages 45-61.
    11. 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.
    12. Kadir Atalay & Garry Barrett, 2022. "Retirement routes and the well-being of retirees," Empirical Economics, Springer, vol. 63(5), pages 2751-2784, November.
    13. Elena Stancanelli & Arthur Van Soest, 2016. "Partners’ leisure time truly together upon retirement," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-19, December.
    14. Bonsang, Eric & Klein, Tobias J., 2012. "Retirement and subjective well-being," Journal of Economic Behavior & Organization, Elsevier, vol. 83(3), pages 311-329.
    15. Stephens, Melvin & Unayama, Takashi, 2012. "The impact of retirement on household consumption in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 26(1), pages 62-83.
    16. Raffaele Miniaci & Chiara Monfardini & Guglielmo Weber, 2010. "How does consumption change upon retirement?," Empirical Economics, Springer, vol. 38(2), pages 257-280, April.
    17. Ioannis Laliotis & Mujaheed Shaikh & Charitini Stavropoulou & Dimitrios Kourouklis, 2023. "Retirement and Household Expenditure in Turbulent Times," Journal of Family and Economic Issues, Springer, vol. 44(4), pages 968-989, December.
    18. Garz, Marcel, 2018. "Retirement, consumption of political information, and political knowledge," European Journal of Political Economy, Elsevier, vol. 53(C), pages 109-119.
    19. Nicolas Moreau & Elena Stancanelli, 2015. "Household Consumption at Retirement: A Regression Discontinuity Study on French Data," PSE-Ecole d'économie de Paris (Postprint) halshs-00881215, HAL.
    20. Stancanelli, Elena G. F., 2012. "Spouses' Retirement and Hours Outcomes: Evidence from Twofold Regression Discontinuity with Differences-in-Differences," IZA Discussion Papers 6791, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    time allocation; home production; retirement; couples;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J29 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Other
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp9156. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.