Working Paper: CEPR ID: DP1911
Authors: David M. Blau; Regina T. Riphahn
Abstract: This study investigates the labour force behaviour of older married couples in Germany. Monthly observations from the first 11 waves of the German Socio-Economic Panel (GSOEP) are used to describe and analyse the relationship between the labour force behaviour of husbands and wives. The empirical model is a discrete time, competing risks hazard model of transitions among labour force states defined by the employment status of both spouses. The analysis indicates that the probability of one spouse exiting employment is much larger if the other spouse is not employed than if the other spouse is employed. Similarly, one member of a couple is much more likely to enter employment if the spouse is employed than if the spouse is not employed. Observed covariates, including wages and retirement benefits, help to explain these patterns, but unobserved preferences for shared leisure also appear to
Keywords: Retirement; Household decision-making; Aging
JEL Codes: H55; J26
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Employment status of husband (J12) | Employment status of wife (J12) |
| Employment status of wife (J12) | Employment status of husband (J12) |
| Employment status of partner (J12) | Likelihood of entering employment (J68) |
| Husband's retirement benefits (J26) | Both spouses' labour force participation (J12) |
| Health status of husband (I12) | Employment status of wife (J12) |