Retirement coordination and leisure complementarity
Abstract
Empirical evidence suggests that in a large fraction of working couples spouses retire within a short period of time. This retirement coordination is frequently attributed to leisure complementarities. Contrary to this view, I find strong substitutability between the leisure of the two household members. Using a dynamic programming model of optimal retirement and labor supply decisions, I further show that high levels of retirement coordination can be observed even in the absence of leisure complementarity. Retirement coordination is higher in the households with more equality in the earnings profiles and utility derived from the leisure of their individual members.
Citation
Merkurieva , I 2023 , ' Retirement coordination and leisure complementarity ' , Labour Economics , vol. 85 . https://doi.org/10.1016/j.labeco.2023.102431
Publication
Labour Economics
Status
Peer reviewed
Type
Journal article
Rights
Copyright © 2023 The Author(s). Published by Elsevier B.V. This is an open access article undert he CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
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