Economic Determinants of Workers’ Retirement Decisions

Coile, Courtney

doi:10.1002/9781119158424.ch10

Cited by 11 publications

(15 citation statements)

References 81 publications

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“…The paper contributes to the rich literature on supply-side factors, as surveyed in Coile (2015). With their widely cited study of a dozen developed countries, Gruber and Wise (1999) no doubt provided a first large-scale investigation of labor supply factors.…”

Section: Introductionmentioning

confidence: 99%

Spousal and survivor benefits in option value models of retirement: an application to Belgium

Jousten¹,

Lefèbvre

2017

Journal of Pension Economics and Finance

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E S Spousal and Survivor Benefits in Option ValueIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. We study retirement incentives with augmented option value model à la Stock and Wise (1990). We propose methodological extensions to better reflect the respective incentives faced by singles and couples. Our results show that a more comprehensive modelling of couples' incentives leads to very different patterns of retirement incentives -particularly for women. We apply the new indicators to data from the Survey of Health, Ageing and retirement in Europe (SHARE) in Belgium and find two key results. First, contrary to several previous studies, we obtain a positive signed income effects. Second, we find very different retirement incentives for men and women, with little flexibility in the retirement decision for men and substantially more flexibility for women as a function of financial incentives and household composition.JEL Classification: H55, J21, J26

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Section: Introductionmentioning

confidence: 99%

Spousal and survivor benefits in option value models of retirement: an application to Belgium

Jousten¹,

Lefèbvre

2017

Journal of Pension Economics and Finance

View full text Add to dashboard Cite

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“…On one hand, if an older adult opts to delay Medicare enrollment while being continuously covered by employment-based health insurance, delayed Medicare enrollment would decrease federal spending on Medicare benefits (Meyerson & Manchester, 2012). The probabilities of retirement peak at the ages of 62 and 65, when people become first eligible for Social Security and Medicare respectively (i.e., critical ages ) (Coile, 2015) and more retirees are participating in formal or informal volunteering (Chambre & Netting, 2018). However, with improvements in health and longevity, approximately 24% of older men and 15% of older women aged over 65 years remain in the labor force in the United States, although some of them do so reluctantly for economic reasons (Coile, 2015; Moen, 2016).…”

Section: Introductionmentioning

confidence: 99%

“…For example, although poor health is a risk factor of being uninsured among middle-aged individuals, those with poor health and disability are more likely to enroll in Medicare when it becomes first available at 65 as they tend to experience involuntary early retirement (Denton et al, 2013). Low income, a lack of pension income, and high costs of living are important predictors associated with labor force participation among individuals aged 65 years or older (Coile, 2015; Farnham & Sevak, 2016).…”

Section: Introductionmentioning

confidence: 99%

Non-Medicare Enrollees Aged 65 or Older: The Effects of Labor-Force Participation, Citizenship, and Age

Choi

2020

J Appl Gerontol

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This study investigated the relationships among age, labor force participation, and citizenship status in relation to non-Medicare enrollment among individuals aged 65 years or older. Two-level multilevel modeling (states > individuals) with a nationally representative sample of 566,003 individuals was conducted to control for state-level variations in non-Medicare enrollment rates. Among those aged 65 to 66 years, 11.2% were non-Medicare enrollees nationwide. However, analyses indicated significant differences in non-Medicare enrollment rates by age, labor force participation, citizenship status, and state of residence. Moreover, the relationship between labor force participation and age was different between U.S. citizens and noncitizens (i.e., a significant three-way interaction). Specifically, labor force participation was associated with greater probabilities of non-Medicare enrollment among U.S. citizens aged between 65 and 69 years, although the opposite was true among noncitizens. While reasons for non-Medicare enrollment appear voluntary for some older adults (i.e., employment), some associated factors indicate subpopulations of vulnerable non-Medicare enrollees (i.e., noncitizens, aged 70+).

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“…Prior work on the role of Social Security in retirement has estimated elasticities with respect to benefit levels (e.g., Coile and Gruber, 2007; Liebman et al ., 2009; Coile, 2015). This study instead measures whether the age pattern of retirement is affected by Social Security coverage on the extensive margin.…”

Section: Introductionmentioning

confidence: 99%

Social security and retirement timing: evidence from a national sample of teachers

Morrill

Westall

2019

Journal of Pension Economics and Finance

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This study documents an important role for Social Security income in workers’ retirement timing. About 40% of public school teachers are not covered by Social Security. This provides an opportunity to analyze the causal impact of Social Security on retirement timing by comparing covered and non-covered teachers. Using individual-level data from the American Community Survey, we find robust evidence of higher rates of retirement among covered teachers at Social Security eligibility ages. This pattern is confirmed using an alternative regression model of participation in the teacher labor force. These estimates suggest that, should the federal government mandate full inclusion in Social Security for all public sector workers, the retirement timing patterns of newly covered teachers and other public sector workers would likely change.

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Economic Determinants of Workers’ Retirement Decisions

Cited by 11 publications

References 81 publications

Spousal and survivor benefits in option value models of retirement: an application to Belgium

Spousal and survivor benefits in option value models of retirement: an application to Belgium

Non-Medicare Enrollees Aged 65 or Older: The Effects of Labor-Force Participation, Citizenship, and Age

Social security and retirement timing: evidence from a national sample of teachers

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