Retirement behavior of working couples in Norway. A dynamic programming approach
Working paper
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Date
2005Metadata
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Abstract
Abstract:
This paper aims to provide an empirical analysis of the joint retirement behavior of working couples
in Norway. A dynamic programming model is specified and estimated on micro data. The estimation
results show that a model, which uses only measures of economic incentives: wages and pension
benefits gives a satisfactory fit to the observed retirement pattern. The results also indicate that
husbands have higher bargaining power within the household. A hypothetical policy simulation
shows that by taxing pension benefits as wage income, the labor market participation of both
husbands and wives will increase around 4 percentage points at age 65.