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Retirement Behavior of Working Couples in Norway. A Dynamic Programming Approach

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Abstract

This paper aims to provide an empirical analysis of the joint retire ment behavior of working couples in Norway. A dynamic programming model is speci.ed and estimated on micro data. The estimation results show that a model, which uses only measures of economic incentives: wages and pension benefits gives a satisfactory fit to the observed retirement pattern. The results also indicate that husbands have higher bargaining power within the household. A hypothetical policy simulation shows that by taxing pension bene.ts as wage income, the labor market participation of both husbands and wives will increase around 4 percentage points at age 65.

Suggested Citation

  • Zhiyang Jia, 2005. "Retirement Behavior of Working Couples in Norway. A Dynamic Programming Approach," Discussion Papers 405, Statistics Norway, Research Department.
    • Handle: RePEc:ssb:dispap:405
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    Cited by:

    1. Iskhakov, Fedor, 2008. "Dynamic Programming Model of Health and Retirement," Memorandum 03/2008, Oslo University, Department of Economics.
    2. Zhiyang Jia, 2005. "Labor Supply of Retiring Couples and Heterogeneity in Household Decision-Making Structure," Review of Economics of the Household, Springer, vol. 3(2), pages 215-233, June.
    3. Zhiyang Jia & Weizhen Zhu, 2012. "The effect of pension wealth on private savings. Results from an extended life cycle model," Discussion Papers 697, Statistics Norway, Research Department.

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    More about this item

    Keywords

    Household Retirement; Dynamic Programming;

    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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