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
JournalResearch on Aging
Pagination7 - 28
Date PublishedJan-01-2017
ISSN Number0164-0275
KeywordsCouples, Employment and Labor Force, Job loss, Marriage, Older Adults, Retirement Planning and Satisfaction

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

Short TitleResearch on Aging
Citation Key8861
PubMed ID28181869