Joint Retirement of Couples: Evidence from a Natural Experiment

32 Pages Posted: 13 Mar 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: June 10, 2014

Abstract

We estimate and explain the impact of early retirement of husbands on the 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 retirement choice of husbands is instrumented with eligibility rules for generous early retirement benefits that were temporarily and unexpectedly available. The empirical model explains wives’ probability to retire within one year. We find that early retirement opportunity of husbands increased the wives’ probability to retire within one year by 25.4 percentage points. This is a strong effect. Our results are robust to several sensitivity tests.

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 (June 10, 2014). Netspar Discussion Paper No. 06/2014-087, Available at SSRN: https://ssrn.com/abstract=2576820 or http://dx.doi.org/10.2139/ssrn.2576820

Hans Bloemen

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 (Contact Author)

Utrecht University ( email )

Kriekenpitplein 21-22
Utrecht, Utrecht 3584 EC
Netherlands

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