Joint Retirement of Couples: Evidence from a Natural Experiment

Tinbergen Institute Discussion Paper 15-028/V

34 Pages Posted: 24 Feb 2015

See all articles by Hans Bloemen

Hans Bloemen

VU University Amsterdam; IZA Institute of Labor Economics; Tinbergen Institute; Netspar

Stefan Hochguertel

VU University Amsterdam; Tinbergen Institute

Jochem Zweerink

Utrecht University

Multiple version iconThere are 3 versions of this paper

Date Written: February 10, 2015

Abstract

We estimate and explain the impact of early retirement of husbands on their wives’ probability to retire within one year, using administrative micro panel data that cover the whole Dutch population. We employ an instrumental variable approach in which the retirement choice of husbands is instrumented with eligibility rules for generous early retirement benefits that were temporarily and unexpectedly available to them. We find that early retirement opportunities of husbands increased the wives’ probability to retire by 24.6 percentage points. This is a strong, and robust effect. Partly, wives respond to husbands’ choices at ages when they are themselves likely eligible for early retirement programs.

Keywords: instruments, retirement, couples

JEL Classification: C26, J26, J120, J140

Suggested Citation

Bloemen, Hans and Hochguertel, Stefan and Zweerink, Jochem, Joint Retirement of Couples: Evidence from a Natural Experiment (February 10, 2015). Tinbergen Institute Discussion Paper 15-028/V, Available at SSRN: https://ssrn.com/abstract=2569007 or http://dx.doi.org/10.2139/ssrn.2569007

Hans Bloemen (Contact Author)

VU University Amsterdam ( email )

De Boelelaan 1105
Amsterdam, ND North Holland 1081 HV
Netherlands

IZA Institute of Labor Economics

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

Tinbergen Institute

Gustav Mahlerplein 117
Amsterdam, 1082 MS
Netherlands

Netspar

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Stefan Hochguertel

VU University Amsterdam ( email )

Dept Econ (FEWEB)
De Boelelaan 1105
1081HV Amsterdam
Netherlands
+31 20 59 86033 (Phone)
+31 20 59 89870 (Fax)

Tinbergen Institute

Gustav Mahlerplein 117
Amsterdam, 1082 MS
Netherlands

Jochem Zweerink

Utrecht University ( email )

Kriekenpitplein 21-22
Utrecht, Utrecht 3584 EC
Netherlands

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