Retirement in Non-Cooperative and Cooperative Families

21 Pages Posted: 18 Jun 2001

See all articles by Erik Hernæs

Erik Hernæs

University of Oslo - Ragnar Frisch Centre for Economic Research

Zhiyang Jia

Statistics Norway

Steinar Strøm

University of Oslo - Ragnar Frisch Centre for Economic Research; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: May 2001

Abstract

Models that allow for non-cooperative as well as cooperative behavior of families are estimated on data from Norway in 1993 and 1994. The husband is eligible for early retirement while the wife is not. The models aim at explaining labor supply behavior of married couples the first twelve months after the husband became eligible for early retirement. Estimates and predictions derived from the different models are compared. Yet, no definite conclusion is reached with respect to what model is best at explaining the observed behavior. The models are employed to simulate the impacts on labor supply of taxing pension income the same way as labor income. We find that this change of the tax system may reduce the propensity to retire early considerably.

Keywords: Family Labor Supply, Retirement, Econometric Models, Policy Simulations

JEL Classification: D10, H55, J26

Suggested Citation

Hernæs, Erik and Jia, Zhiyang and Strøm, Steinar, Retirement in Non-Cooperative and Cooperative Families (May 2001). CESifo Working Paper Series No. 476. Available at SSRN: https://ssrn.com/abstract=271575

Erik Hernæs

University of Oslo - Ragnar Frisch Centre for Economic Research ( email )

Gaustadalleen 21
N-0317 Oslo
Norway

Zhiyang Jia

Statistics Norway ( email )

N-0033 Oslo
Norway

Steinar Strøm (Contact Author)

University of Oslo - Ragnar Frisch Centre for Economic Research ( email )

Gaustadalleen 21
N-0317 Oslo
Norway

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Register to save articles to
your library

Register

Paper statistics

Downloads
100
Abstract Views
986
rank
273,077
PlumX Metrics