DP Number DP2017-006

Language 英語のみ

Date December, 2017

Author Tadashi Sakai, Akihito Toda, Atsuhiro Yamada

JEL Classification codes J14; J22; J26

Keywords Retirement; Middle-aged person; Interdependence

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Abstract

Based on a large longitudinal data set on Japanese middle-aged and older individuals, this study investigates whether women’s labor force participation affects their husbands’ retirement decisions. Employing a simple fixed-effects model, we found a significant positive effect of wives’ labor force participation on husbands’ retirement decisions, which seems to imply that a husband’s leisure is complementary to that of his wife. However, when employing the instrumental variable fixed-effects model, which assumes joint decision-making by the husband and wife, we found no significant effect of the wife’s employment on her husband’s retirement decision, regardless of employment type.