Does Consumption Decrease After Retirement, and for Whom?

Ayal Kimhi and Maya Sender

No 290054, Discussion Papers from Hebrew University of Jerusalem, Department of Agricultural Economics and Management

Abstract: This paper examines the decline in consumption after retirement by quantiles of the consumption distribution, by gender, by pre‐retirement employment status and by age. The retirement‐induced decline in consumption is larger among those who were employees than among those who were self‐employed, but only for males. In contrast, those who did not work do not experience a decline in consumption when they cross the official retirement age, and in some cases their consumption actually increases. Without allowing for age‐specific effects, it was found that the decline in consumption is largest in the middle of the consumption distribution, while after allowing the decline in consumption to depend on age, it was found that the decline is largest at lower levels of consumption and becomes more moderate as the person climbs along the consumption distribution. These results are consistent with the hypothesis that inadequate savings are a major reason for the decline in consumption after retirement.

Keywords: Food Consumption/Nutrition/Food Safety; Labor and Human Capital (search for similar items in EconPapers)
Pages: 17
Date: 2018
New Economics Papers: this item is included in nep-age and nep-dem
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/290054/files/d ... 0for%20whom-full.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:huaedp:290054

DOI: 10.22004/ag.econ.290054

Access Statistics for this paper

More papers in Discussion Papers from Hebrew University of Jerusalem, Department of Agricultural Economics and Management Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().