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Retirement in Non-Cooperative and Cooperative Families*
By Hernæs, Erik, Zhiyang, Jia and Steinar Strøm
Memorandum 15/2006
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Abstract |
Models for non-cooperative as well as cooperative behavior of families are estimated on data
from Norway from 1994 to 1998. The models aim at explaining labor supply behavior of
married couples the first five months after the husband becomes eligible for early retirement,
while the wife is not eligible. Estimates and predictions derived from the different models are
compared. Econometric tests find that the Stackelberg model with the male as the leader is the
best. Simulations with the estimated models show that taxing pension income the same way
as labor income would reduce the propensity to retire early considerably. |
| JEL Classification:
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D10, H55, J26 |
| Keywords:
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family labor supply, retirement, econometric models, policy simulations |
| Project:
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1221 The Ageing Population
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| Financing:
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Economic and
Social Research Institute, Cabinet Office, the Government of Japan |
| Contact:
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erik.hernas@frisch.uio.no |
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[Full Text PDF]
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