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Labor Supply of Retiring Couples and Heterogeneity in Household Decision-Making Structure

Authors:

Zhiyang, Jia

Year:

2005

Reference:

Review of Economics of the Household

No 3, p 215-33

Summary

This paper analyze the labor market participation behavior of retiring couples in Norway. To account for the unobserved heterogeneity in decision-making structure within the household. I formulate a mixed model by assuming there are two types of households, the cooperative type and the non-cooperative type. I assume that non-cooperative households behave according to a Stackelberg game with the male as the leader, while cooperative households engage in a cooperative bargaining process. The estimation results show that more than half of the households are of the non-cooperative type.

JEL:

D10, J26

Keywords:

Household labor supply, retirement, unobserved heterogeneity, mixed model

Project:

Oppdragsgiver: Norges forskningsråd
Oppdragsgivers prosjektnr.:
Frisch prosjekt: 1132 - Labour force participation among the elderly and the finances of the pension system

Financing:

Norges forskningsråd