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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.

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  • 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 & 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.
    3. 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.

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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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