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Household Consumption at Retirement: a Regression Discontinuity Study on French Data

Author

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  • Nicolas Moreau

    (CEMOI - Centre d'Économie et de Management de l'Océan Indien - UR - Université de La Réunion)

  • Elena Stancanelli

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

Previous literature has investigated the drop in household consumption after the retirement of the household head, referred to as the so-called 'retirement consumption puzzle'. This article expands on these studies by taking the retirement of the wife into consideration, thus distinguishing between 'dualearner' households and those in which the wife is a 'housewife'. A regression discontinuity approach is used to estimate the effect of each partner's retirement on household consumption. The analysis data are derived from the 2001 French Consumer Budget Survey that collected two-week expenditure diaries. The findings indicate a significant and sizable decrease in clothing expenditure upon the retirement of the male partner.

Suggested Citation

  • Nicolas Moreau & Elena Stancanelli, 2015. "Household Consumption at Retirement: a Regression Discontinuity Study on French Data," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01044871, HAL.
    • Handle: RePEc:hal:cesptp:hal-01044871
    DOI: 10.15609/annaeconstat2009.117-118.253
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    Cited by:

    1. Eibich, Peter & Siedler, Thomas, 2020. "Retirement, intergenerational time transfers, and fertility," European Economic Review, Elsevier, vol. 124(C).
    2. Allais, Olivier & Leroy, Pascal & Mink, Julia, 2020. "Changes in food purchases at retirement in France," Food Policy, Elsevier, vol. 90(C).
    3. Oliwia Komada & Pawel Strzelecki & Joanna Tyrowicz, 2019. "A regression discontinuity evaluation of reducing early retirement eligibility in Poland," International Journal of Manpower, Emerald Group Publishing Limited, vol. 40(2), pages 286-303, February.
    4. Peter Eibich, 2014. "Understanding the Effect of Retirement on Health Using Regression Discontinuity Design," SOEPpapers on Multidisciplinary Panel Data Research 669, DIW Berlin, The German Socio-Economic Panel (SOEP).
    5. Fischer, Björn & Müller, Kai-Uwe, 2020. "Time to care? The effects of retirement on informal care provision," Journal of Health Economics, Elsevier, vol. 73(C).
    6. Kyureghian, Gayaneh & Soler, Louis-Georges, 2016. "Life Cycle Consumption of Food: Evidence from French Data," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236785, Agricultural and Applied Economics Association.
    7. Patrick Moran & Martin Orquote Connell & Cormac Orquote Dea & Francesca Parodi, 2021. "Heterogeneity in Household Spending and Well-being around Retirement," Working Papers wp427, University of Michigan, Michigan Retirement Research Center.
    8. Ioannis Laliotis & Mujaheed Shaikh & Charitini Stavropoulou & Dimitrios Kourouklis, 2023. "Retirement and Household Expenditure in Turbulent Times," Journal of Family and Economic Issues, Springer, vol. 44(4), pages 968-989, December.
    9. Kyureghian, Gayaneh & Soler, Louis-Georges, 2017. "Life Cycle Consumption Of Food At Home: Facts From French Purchase Data," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 260920, European Association of Agricultural Economists.
    10. Paweł Strzelecki & Joanna Tyrowicz, 2015. "Crowding (out) the retirees? RDD application to raising effective retirement age in Poland," Working Papers 2015-10, Faculty of Economic Sciences, University of Warsaw.
    11. Heller-Sahlgren, Gabriel, 2017. "Retirement blues," Journal of Health Economics, Elsevier, vol. 54(C), pages 66-78.
    12. Li, Hongbin & Shi, Xinzheng & Wu, Binzhen, 2016. "The retirement consumption puzzle revisited: Evidence from the mandatory retirement policy in China," Journal of Comparative Economics, Elsevier, vol. 44(3), pages 623-637.
    13. Kyureghian, G. & Soler, L.-G., 2018. "Life-Cycle Consumption of Food at Home in France: Empirical Evidence from Food Expenditures and Home Production," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277548, International Association of Agricultural Economists.
    14. Jim Been & Susann Rohwedder & Michael Hurd, 2021. "Households’ joint consumption spending and home production responses to retirement in the US," Review of Economics of the Household, Springer, vol. 19(4), pages 959-985, December.
    15. Christian Dudel & Julian Schmied, 2019. "Pension adequacy standards: an empirical estimation strategy and results for the United States and Germany," MPIDR Working Papers WP-2019-003, Max Planck Institute for Demographic Research, Rostock, Germany.
    16. Julia Mink, 2021. "The effects of major life events and exposure to adverse environmental conditions on health and health-related outcomes [Les effets d'événements majeurs de la vie et de l'exposition à des condition," SciencePo Working papers tel-03575191, HAL.
    17. Eibich, Peter, 2015. "Understanding the effect of retirement on health: Mechanisms and heterogeneity," Journal of Health Economics, Elsevier, vol. 43(C), pages 1-12.
    18. Georganas, Sotiris & Laliotis, Ioannis & Velias, Alina, 2022. "The best is yet to come: The impact of retirement on prosocial behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 196(C), pages 589-615.
    19. Julia Mink, 2021. "The effects of major life events and exposure to adverse environmental conditions on health and health-related outcomes [Les effets d'événements majeurs de la vie et de l'exposition à des condition," SciencePo Working papers Main tel-03575191, HAL.
    20. Christian Dudel & Julian Schmied, 2023. "Pension benchmarks: empirical estimation and results for the United States and Germany," Fiscal Studies, John Wiley & Sons, vol. 44(2), pages 171-188, June.

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    More about this item

    Keywords

    Household Consumption; Retirement; regression discontinuity; ageing;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

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