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Multivariate mixed proportional hazard modelling of the joint retirement of married couples
Author(s) -
An Mark Y.,
Christensen Bent Jesper,
Gupta Nabanita Datta
Publication year - 2004
Publication title -
journal of applied econometrics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.878
H-Index - 99
eISSN - 1099-1255
pISSN - 0883-7252
DOI - 10.1002/jae.783
Subject(s) - spouse , economics , wife , health and retirement study , danish , multivariate statistics , hazard , demographic economics , demography , sociology , statistics , mathematics , political science , linguistics , philosophy , chemistry , organic chemistry , anthropology , law
We analyse the joint distribution of the durations until retirement of Danish husbands and wives. We estimate a multivariate mixed proportional hazards model that allows for interdependence in the times to retirement of spouses. We find evidence of strong complementarities in leisure times. Symmetrically for husband and wife, low own income and poor health are found to induce individual retirement (prior to spouse's retirement), whereas low spousal income is not, and neither party is found likely to substitute own for purchased care when the spouse is in poor health. Furthermore, high wealth and low income are found to spur joint (simultaneous) retirement. Copyright © 2004 John Wiley & Sons, Ltd.