6533b836fe1ef96bd12a14e1
RESEARCH PRODUCT
How does an allowance for a non-working younger partner affect the retirement behaviour of couples?
Amparo Nagore GarcíaArthur Van Soestsubject
Organizational Behavior and Human Resource ManagementEconomics and Econometricspartner allowanceStrategy and ManagementMechanical Engineering05 social sciencesMetals and AlloysAllowance (money)UNESCO::CIENCIAS ECONÓMICASpensionsAffect (psychology):CIENCIAS ECONÓMICAS [UNESCO]Industrial and Manufacturing Engineeringageinghousehold labour supply0502 economics and businessEconomicsDemographic economics050207 economicshealth care economics and organizationsFinance050205 econometricsdescription
AbstractWe examine the effect of the partner allowance (PA) in the Dutch pension system on the retirement decisions of couples using administrative data. PA was paid to people who receive the public old-age pension with a partner younger than the state pension age (SPA) and with a low own income. PA worked as a financial incentive to retire earlier, especially for the younger partners. As of 1 April 2015, new old-age pensioners are no longer entitled to this allowance. We estimate the effect of this reform on the retirement behaviour of each spouse. To account for the fact that at the same time, another reform essentially put an end to generous early retirement arrangements, we compare singles and couples. We conclude that PA substantially increased female younger partners' probabilities to exit from part-time employment into retirement close to the older partner's SPA. On the other hand, there is no evidence that male younger partners (either full-time or part-time workers) responded to the PA reform. In addition, PA increased male older partners’ probabilities to retire in the years before reaching their SPA.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2021-07-02 | Journal of Pension Economics and Finance |