Late Career Job Loss and Retirement Behavior of Couples.

TitleLate Career Job Loss and Retirement Behavior of Couples.
Publication TypeJournal Article
Year of Publication2017
AuthorsLee, A
JournalRes Aging
Date Published2017 01
ISSN Number1552-7573
KeywordsAged, Aged, 80 and over, Aging, Female, Humans, Least-Squares Analysis, Male, Middle Aged, Retirement, Social Security, Spouses, Unemployment

This article argues that wealth uncertainty influences when couples choose to retire. Using data from the Health and Retirement Study, I show that wives delay retirement when their husbands retire following a job loss. This effect is stronger when husbands are the primary earners, and couples are relatively poorer. This provides evidence of intra-household insurance that mitigates the impact of an unexpected earnings shock. I find that wives tend to delay retirement only until they become eligible for social security. This suggests that social security benefits can relax households' budget constraints and allow wives to join their husbands in retirement.

User Guide Notes

Short TitleResearch on Aging
Alternate JournalRes Aging
Citation Key8861
PubMed ID28181869