Public Pension Programmes and the Retirement of Married Couples in Denmark

Paul Bingley and Gauthier Lanot
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Paul Bingley: Economics Department, Aarhus School of Business

No KERP 2006/20, Keele Economics Research Papers from Centre for Economic Research, Keele University

Abstract: In this paper we study the economic determinants of the joint retirement process of married couples. We propose a tractable dynamic discrete choice model for retirement decisions which allows for non-trivial saving behaviour. We estimate the model on a 1\% sample of Danish couples of potential retirement age drawn from a population-based administrative register. The introduction and subsequent reforms of a publicly financed early-retirement programme provide us with variation in the data to ensure identification of the the elasticities of participation/retirement with respect to income flows. Our estimates imply a significant asymmetry in the sensitivity of retirement behaviour of men and women with respect to variation in their own, or their spouse’s income flows.

Keywords: Retirement; pensions; dynamic structural model. (search for similar items in EconPapers)
JEL-codes: C35 H24 J26 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2006-10
New Economics Papers: this item is included in nep-dcm
Note: The Danish Social Sciences Research Council (24-02-0064) and UK Economic and Social Research Council (RES-000-27-0200) provided funding. This paper has benefited from comments received from workshop participants in CAM Copenhagen, RES Nottingham and TAPES Uppsala, especially Martin Browning, Jim Poterba, Arthur Van Soest and Ian Walker. The usual disclaimer applies.
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Related works:
Chapter: Public Pension Programmes and the Retirement of Married Couples in Denmark (2007)
Journal Article: Public pension programmes and the retirement of married couples in Denmark (2007)
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