Cover
RAPPORT

Labor or Leisure?

Labor supply of older couples and the role of full retirement age

Labor supply of older couples and the role of full retirement age

This paper estimates the labor supply response when the spouse reaches full retirement age (FRA). We exploit the age difference within couples and changes in pension legislation in Switzerland to identify the causal effect. In contrast to the majority of previous contributions, we do not only estimate the effect on labor market participation (extensive margin), but also estimate the effect on the hours decision (intensive margin). We find that the labor force participation rate of women drops by around 3 percentage points in response to the spouse reaching full retirement age. We fi nd no evidence that men adjust their labor force participation rate when their wife reaches FRA. At the intensive margin, we find only small and non-signifi cant effects for both men and women. We argue that the response can be explained by complementarity in leisure and liquidity effects.

logo experttube

Video's op het gebied van Audit & Control, Actuariaat & Risk Management, Juridisch & Fiscale Zaken, Pensioenen, Schade & Hypotheken, Compliance en Investment Management.

Bekijk ons volledige overzicht op www.experttube.nl.

logo CareerTube

Videoplatform met werkenbij video's van toonaangevende organisaties in de financiële wereld. Met een focus op de finance specialisatie zorgt de koppeling met de 17 (niche) vacaturesites van CareerGuide direct voor een relevant bereik.

Bekijk ons volledige overzicht op www.careertube.com.