The Effects of a Retirement Age Reform on Couples' Labor Supply Decisions

Edith Sand () and Shirlee Lichtman-Sadot

No 2019.13, Bank of Israel Working Papers from Bank of Israel

Abstract: This paper estimates how a pension reform in Israel that raised both men's and women's ages of retirement benefits concurrently affected spousal labor supply decisions. We utilize detailed administrative data in order to estimate spouse retirement decisions and to understand their interdependencies. We find that one's own retirement age deferral increases their own labor supply. However, spillover effects differ by gender. While for men, labor supply does not depend on their wife’s retirement age deferral, for women, postponing their husband’s retirement age delays their own retirement if their own retirement age has not been postponed.

Pages: 42 pages
Date: 2019-12
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