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Labor Supply of Retiring Couples and Heterogeneity in Household Decision-Making Structure

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This paper analyzes the labor market participation behavior of retiring couples in Norway. To account for the unobserved heterogeneity in decision-making structure within the household, I formulate a mixed model by assuming there are two types of households, the cooperative type and the non-cooperative type. I assume that non-cooperative households behave according to a Stackelberg game with the male as the leader, while cooperative households engage in a cooperative bargaining process. The estimation results show that more than half of the households are of the non-cooperative type.

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  • Zhiyang Jia, 2005. "Labor Supply of Retiring Couples and Heterogeneity in Household Decision-Making Structure," Discussion Papers 404, Statistics Norway, Research Department.
  • Handle: RePEc:ssb:dispap:404
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    Cited by:

    1. Volker Meier & Helmut Rainer, 2012. "Beyond Ramsey: Gender-Based Taxation with Non-Cooperative Couples," CESifo Working Paper Series 3966, CESifo Group Munich.
    2. Maruyama, Shiko, 2014. "Estimation of finite sequential games," Journal of Econometrics, Elsevier, vol. 178(2), pages 716-726.
    3. repec:eee:labeco:v:46:y:2017:i:c:p:177-188 is not listed on IDEAS
    4. Lalive, Rafael & Parrotta, Pierpaolo, 2016. "How Does Pension Eligibility Affect Labor Supply in Couples?," IZA Discussion Papers 10361, Institute for the Study of Labor (IZA).
    5. John K. Dagsvik & Zhiyang Jia, 2006. "Labor Supply as a Choice among Latent Job Opportunities. A Practical Empirical Approach," Discussion Papers 481, Statistics Norway, Research Department.
    6. Kaya, Ezgi, 2014. "Heterogeneous Couples, Household Interactions and Labor Supply Elasticities of Married Women," Cardiff Economics Working Papers E2014/18, Cardiff University, Cardiff Business School, Economics Section.

    More about this item

    Keywords

    household labor supply; retirement; unobserved heterogeneity; mixed model;

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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