Working Paper: NBER ID: w2803
Authors: Michael D. Hurd
Abstract: The objective of the paper is to find empirically whether husbands and wives tend to retire at the same time, and to give an explanation of the findings. Similarity of retirement dates could be caused by similarity of tastes (assortative mating), by economic variables, or by the complimentarity of leisure. Each explanation would have different implications for the response of retirement to policy changes. Both simple data analysis and economic models of the age of retirement point to coordination of retirement dates: husbands and wives tend to retire at the same time. According to the results, very little of the coordination is due to economic variables, and simple cross-tabulations rule out assortative mating as an important explanation. This leaves complimentarity of leisure. Because of data limitations, this conclusion is, however, mainly qualitative. The data set is the Mew Beneficiary Survey.
Keywords: retirement; joint decision; couples; social security
JEL Codes: J26; D10
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Husbands and wives tend to retire at the same time (J26) | Joint retirement decision (J26) |
| Complementarity of leisure between spouses (D13) | Joint retirement decision (J26) |
| Age difference between spouses (J12) | Retirement timing (J26) |
| Wife's retirement age (J26) | Husband's retirement age (J26) |