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Labor Supply of Retiring Couples and Heterogeneity in Household Decision-Making Structure

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Abstract

This paper analyzes the labor market participation behavior of retiring couples in Norway. To account for the unobserved heterogeneity in decision-making structure within the household, I formulate a mixed model by assuming there are two types of households, the cooperative type and the non-cooperative type. I assume that non-cooperative households behave according to a Stackelberg game with the male as the leader, while cooperative households engage in a cooperative bargaining process. The estimation results show that more than half of the households are of the non-cooperative type.

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Authors and Affiliations

  1. Research Department, Statistics Norway, P.O.Box 8131, 0033, Oslo, Norway

    Zhiyang Jia

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  1. Zhiyang Jia
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Correspondence to Zhiyang Jia.

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*Part of this paper was written while I was working at Department of Economics, University of Oslo and the Ragnar Frisch Center for Economic Research. I would like to thank Eivind Bernhardsen, John K. Dagsvik, Erik Hernæs and Steinar Strøm for their insightful comments. I am grateful to two anonymous referees and the editor, Professor Shoshana Grossbard, for providing valuable comments that greatly improve this paper. Financial support from the Research Council of Norway (project 140082/530) is gratefully acknowledged. The usual disclaimer applies.

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Jia, Z. Labor Supply of Retiring Couples and Heterogeneity in Household Decision-Making Structure. Rev Econ Household 3, 215–233 (2005). https://doi.org/10.1007/s11150-005-0711-3

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  • DOI: https://doi.org/10.1007/s11150-005-0711-3

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