Retirement and Home Production: A Regression Discontinuity Approach

Existing studies show that individuals who retire replace some private consumption with home production, but do not consider joint behavior of couples. Here we analyze the causal effect of retirement of each partner on hours of home production for both partners in a couple. Our identification strate...

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Bibliographic Details
Published in:The American economic review 2012-05, Vol.102 (3), p.600-605
Main Authors: Stancanelli, Elena, Van Soest, Arthur
Format: Article
Language:English
Subjects:
Age
Causality
Commercial production
Consumption
Early retirement
Economic theory
Economics and Finance
Expenditures
France
Gender studies
Home gardening
Homes
Hours of work
Households
Housekeeping
Housework
Humanities and Social Sciences
International
Leisure
Marriage
Men
Recreation
Regression analysis
Retirement
Retirement age
Shopping
Social life & customs
TIME AWAY FROM WORK
Time use
Unemployment
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Summary:Existing studies show that individuals who retire replace some private consumption with home production, but do not consider joint behavior of couples. Here we analyze the causal effect of retirement of each partner on hours of home production for both partners in a couple. Our identification strategy exploits the earliest age retirement laws in France, enabling a fuzzy regression discontinuity approach. We find that own retirement significantly increases own hours of home production and the effect is larger for men than for women. Moreover, retirement of the female partner significantly reduces male hours of home production but not vice versa. [PUBLICATION ABSTRACT]
ISSN:0002-8282
1944-7981
DOI:10.1257/aer.102.3.600