EconStor >
Forschungsinstitut zur Zukunft der Arbeit (IZA), Bonn >
IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA) >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/20560
  
Title:A Collective Retirement Model : Identification and Estimation in the Presence of Externalities PDF Logo
Authors:Michaud, Pierre-Carl
Vermeulen, Frederic
Issue Date:2004
Series/Report no.:IZA Discussion paper series 1294
Abstract:We study the labor supply dynamics of elderly couples by means of a structural collective model. The model allows for general externalities with respect to spouses? leisure. Preferences and the intrahousehold bargaining process are identified by using panel data with couples and individuals who turned into widow(er)hood in the covered period. The model does not only look at the extensive margin (working versus being retired), but also at the intensive margin (how many hours are worked) and the claiming decision for social security benefits. We apply the model to American households coming from the first five waves of the Health and Retirement Study. We also provide model simulations for two widely discussed reform proposals; more specifically the abolition of the earnings test and the elimination of the spouse benefit. The model simulations reveal only small changes in labor supply of elderly couples.
Subjects:collective household models
labor supply
retirement
social security
identification
JEL:D13
J26
J22
H31
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

Files in This Item:
File Description SizeFormat
dp1294.pdf523.91 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/20560

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.