Retirement coordination and leisure complementarity

Irina Merkurieva

Labour Economics, 2023, vol. 85, issue C

Abstract: Empirical evidence suggests that in a large fraction of working couples spouses retire within a short period of time. This retirement coordination is frequently attributed to leisure complementarities. Contrary to this view, I find strong substitutability between the leisure of the two household members. Using a dynamic programming model of optimal retirement and labor supply decisions, I further show that high levels of retirement coordination can be observed even in the absence of leisure complementarity. Retirement coordination is higher in the households with more equality in the earnings profiles and utility derived from the leisure of their individual members.

Keywords: Retirement; Leisure complementarity; Intertemporal household choice (search for similar items in EconPapers)
JEL-codes: D13 J14 J22 J26 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:85:y:2023:i:c:s0927537123001069

DOI: 10.1016/j.labeco.2023.102431

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