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laura.hospido@bde.es Bank of Spain and IZA, Madrid, In this paper we study the retirement patterns of couples in a multi-country setting Spain using data from the Survey of Health, Aging and Retirement in Europe. In particular we Full list of author information is available at the end of the article test whether women?s (men?s) transitions out of the labor force are directly related to the actual realization of their husbands? (wives?) transition, using the institutional variation in country-specific early and full statutory retirement ages to instrument the latter. Exploiting the discontinuities in retirement behavior across countries, we find a significant joint retirement effect for women of 21 percentage points. For men, the estimated effect is insignificant. Our empirical strategy allows us to give a causal interpretation to the effect we estimate. In addition, this effect has important implications for policy analysis. JEL Codes: J26, D10, C21 Keywords: Joint retirement; Social security incentives 1 Introduction Continued improvements in life expectancy and fiscal insolvency of public pensions have led to an increase in pension entitlement ages in several countries, especially for women for whom eligibility ages for retirement pensions have been traditionally lower than for men. The success of such policies,
IZA Journal of European Labor Studies – Springer Journals
Published: Jun 20, 2014
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