Retiring Together or Working Alone: The Impact of Spousal Employment and Disability on Retirement Decisions

Johnson, Richard W.; Favreault, Melissa M.

doi:10.2139/ssrn.265143

Cited by 57 publications

(51 citation statements)

References 13 publications

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“…Johnson and Favreault [17] use the Health and Retirement Survey to examine the effect of spousal health and employment on respondent retirement. Three dichotomous measures of spousal health problems are considered: an indicator for more than two functional impairments, an indicator for more than five functional impairments, and poor or fair overall health.…”

Section: Literature Reviewmentioning

confidence: 99%

Measuring the effect of husband's health on wife's labor supply

Siegel

2006

Health Economics

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A sizable proportion of women remain married well into late life and an increasing proportion of them participate in the labor force. Since women tend to marry men older than themselves and men tend to experience serious illnesses at younger ages than women, women frequently witness declining health in their husbands. This is likely to affect a wife's labor-leisure trade-off in offsetting ways. Prior studies have not sought to disentangle the effect of a husband's poor health on his wife's reservation wage from the income effect of his ill health. We argue that, if we control for husband's earnings, the coefficient of husband's health in models of his wife's labor force participation (and hours of work) will reflect, in part, her preference over whether to decrease her labor supply to provide health care for her husband or whether to instead increase it to purchase this care in the market. However, husband's earnings are likely to be endogenous in these models due to unobserved characteristics common to husbands and wives. We find that the estimated effect of husband's health depends on whether we instrument for husband's earnings and on the health measure used. This is indicative of the importance of using a variety of health measures and controlling for husband's earnings, and their endogeneity, in future research on the effect of husband's health on wife's labor supply.

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Section: Literature Reviewmentioning

confidence: 99%

Measuring the effect of husband's health on wife's labor supply

Siegel

2006

Health Economics

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“…A growing literature has demonstrated that husbands and wives tend to retire at the same time (see, for example , Hurd 1990;Gustman and Steinmeier 2000;Maestas 2001;Johnson and Favreault 2001). Furthermore, spousal health and economic incentives are often found to affect retirement (Coile 2003;Johnson and Favreault 2001;Hurd 1990).…”

Section: The Role Of Health Insurance In Joint Retirement Among Marrimentioning

confidence: 99%

“…Furthermore, spousal health and economic incentives are often found to affect retirement (Coile 2003;Johnson and Favreault 2001;Hurd 1990). There is limited research on the importance of retirement health benefits in couples' joint retirement decisions.…”

Section: The Role Of Health Insurance In Joint Retirement Among Marrimentioning

confidence: 99%

The Role of Health Insurance in Joint Retirement among Married Couples

Rogowski¹,

Kapur²

2007

ILR Review

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“…Higher unearned income -indicated by household income, spouse's earnings, or pension from a previous job -reduces labor force participation. Both husbands and wives are more likely to work themselves when their spouse is employedas found by Siegel (2006) and Johnson and Favreault (2001).…”

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confidence: 94%

Three Essays on Health and Labor Outcomes

Breunig

2010

SSRN Journal

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OF DISSERTATION THREE ESSAYS ON HEALTH AND LABOR OUTCOMESThis dissertation is composed of three essays which examine the effects of health on labor market outcomes. Chapter 1 reviews the literature on health and the labor market. It also emphasizes the inherent endogeneity of health when included in models for labor market outcomes. It goes on to highlight the empirical methods most often used to accommodate that endogeneity. iii Chapter 3 examines the extent to which a spouse's ill-health influences the labor supply decisions of the older men and women. Spouses' ill-health is likely to affect their partner's labor supply decision in off-setting ways. I control for the income effect due to the increase in the probability of an ill spouse to leave the labor force. Therefore, my estimates reflect the direct impact of a spouse's ill-health on the partner's labor supply decision through its effect on the partner's reservation wage. However, it is likely that spouses' earnings are endogenous in these models due to unobserved characteristics common to husbands and wives. I find that the estimated effect of a wife's ill health on their partner's labor supply decision is dependent on whether I instrument the spouse's earnings. I also find that the estimated effect of husbands' and wives' ill health on their partners'labor supply decision is dependent on the health measure used in the models. all of the hard work and time he has spent in editing multiple drafts of this dissertation but also for the valuable mentor that he has become over the years.

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Retiring Together or Working Alone: The Impact of Spousal Employment and Disability on Retirement Decisions

Cited by 57 publications

References 13 publications

Measuring the effect of husband's health on wife's labor supply

Measuring the effect of husband's health on wife's labor supply

The Role of Health Insurance in Joint Retirement among Married Couples

Three Essays on Health and Labor Outcomes

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