nep-age New Economics Papers
on Economics of Ageing
Issue of 2009‒05‒09
two papers chosen by
Claudia Villosio
LABORatorio R. Revelli

  1. Old European Couples' Retirement Decisions: the Role of Love and Money By Pozzoli, Dario; Ranzani, Marco
  2. Older or wealthier? The impact of age adjustments on the wealth inequality ranking of countries By Ingvild Almås; Magne Mogstady

  1. By: Pozzoli, Dario (Department of Economics, Aarhus School of Business); Ranzani, Marco (Universita' Cattolica)
    Abstract: This study investigates old European couples' retirement choices in order to bridge the gap between the European and the American literature. The typical European family approaching retirement is a dual-earner family: the dataset used in this paper reveals that 78 percent of working males is married, and amongst these 24 percent has a working wife. This results from dramatic changes in the labor force behaviour of both older men and older women after World War II. These trends signal a need of investigating retirement choices at a household level. Using an absolutely new international micro data (SHARE, Survey of Health, Ageing and Retirement in Europe - Release 2), we adopt a duration analysis approach and estimate both single and competing risks models by allowing for a exible speci cation with and without unobserved heterogeneity. Our ndings show that joint retirement is signi cantly correlated with education, age, and health status, together with partner's employment status, partner's education and partner's health status. We also perform a sensitivity analysis in order to check whether the results on the correlation of health status are robust to two alternative measures of health which possibly correct for subjectivity and cross-country incomparability of self-reported health. We nd that allowing for dierent exit routes and taking into account partner's characteristics is critical to fully understand joint retirement.
    Keywords: Joint retirement; Grouped duration data; Europe
    JEL: C41 J26 O52
    Date: 2009–01–01
  2. By: Ingvild Almås (Norwegian School of Economics and Business Administration); Magne Mogstady (Statistics Norway)
    Abstract: Differences in individual wealth holdings are widely viewed as a driving force of economic inequality. However, as this finding relies on cross-section data, we may confuse older with wealthier. We propose a new method to adjust for age effects in cross-sections, which eliminates transitory wealth inequality due to age, yet preserves inequality arising from other factors. This new method is superior to existing methods, like the much used Paglin-Gini, which is shown to have several problems. A new cross-country comparable database reveals that the choice of method is empirically important: Existing methods yield erroneous wealth inequality rankings of countries.
    Keywords: Wealth inequality, Life cycle, Age adjustments, Gini coeffcient.
    JEL: D31 D63 D91 E21
    Date: 2009

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