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Retirement in Non-Cooperative and Cooperative Families

Author

Listed:
  • Erik Hernæs
  • Zhiyang Jia
  • Steinar Strøm

Abstract

Models that allow for non-cooperative as well as cooperative behavior of families are estimated on data from Norway in 1993 and 1994. The husband is eligible for early retirement while the wife is not. The models aim at explaining labor supply behavior of married couples the first twelve months after the husband became eligible for early retirement. Estimates and predictions derived from the different models are compared. Yet, no definite conclusion is reached with respect to what model is best at explaining the observed behavior. The models are employed to simulate the impacts on labor supply of taxing pension income the same way as labor income. We find that that this change of the tax system may reduce the propensity to retire early considerably.

Suggested Citation

  • Erik Hernæs & Zhiyang Jia & Steinar Strøm, 2001. "Retirement in Non-Cooperative and Cooperative Families," CESifo Working Paper Series 476, CESifo.
    • Handle: RePEc:ces:ceswps:_476
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    References listed on IDEAS

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    Citations

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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. Ugo Colombino & Erik Hernæs & Marilena Locatelli & Steinar Strøm, 2009. "Towards an actuarially fair pension system in Norway," CHILD Working Papers wp14_09, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
    3. Zhiyang Jia, 2005. "Retirement Behavior of Working Couples in Norway. A Dynamic Programming Approach," Discussion Papers 405, Statistics Norway, Research Department.
    4. Jia, Zhiyang, 2003. "A Mixture Model of Household Retirement Choice," Memorandum 04/2003, Oslo University, Department of Economics.
    5. 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.
    6. Rolf Aaberge & Ugo Colombino, 2014. "Labour Supply Models," Contributions to Economic Analysis, in: Handbook of Microsimulation Modelling, volume 127, pages 167-221, Emerald Group Publishing Limited.
    7. Nordberg, Morten, 2007. "The Total Tax on Labour Income," Memorandum 05/2007, Oslo University, Department of Economics.
    8. Zhiyang Jia, 2005. "Spousal Influence on Early Retirement Behavior," Discussion Papers 406, Statistics Norway, Research Department.

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    More about this item

    Keywords

    Family labor supply; retirement; econometric models; policy simulations;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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