HOURS FLEXIBILITY AND RETIREMENT

Data from the Health and Retirement Study indicate that hours constraints are a common feature of jobs held by workers nearing retirement. We present a simple model that predicts that workers who are not free to lower their usual hours of work should be more likely than their unconstrained counterparts to retire by some future date. Our estimates, which are robust to various specifications, support this prediction. The amount by which being hours constrained is estimated to raise retirement probabilities is nearly as large as the effect of being in relatively poor health, suggesting an economically significant effect. ( JEL J26, J22, J14)     

THE ROLE OF FINANCIAL LITERACY IN DETERMINING RETIREMENT PLANS

Workers nearing retirement face many important, and often irreversible, choices. We collected detailed demographic and financial literacy data on over 1,500 workers nearing retirement at three large companies to assess how individuals are planning for retirement. Many respondents display limited knowledge and understanding of public and company‐provided retirement benefits. Controlling for basic demographics and wealth, we find that misconceptions about eligibility ages and plan generosity influence workers' expected age of retirement. Although retirement‐related decisions will affect workers' well‐being for the remainder of their lifetimes, many do not possess enough basic financial knowledge to confidently make optimal choices. (JEL J26, J320, J240)     

RETIREMENT,PERSONALITY, AND WELL‐BEING

This study investigates how two sources of individual heterogeneity—personality and gender—impact the well‐being effects of retirement. Using data on older men and women from the British Household Panel Survey and its continuation, Understanding Society, we estimate the causal effect of retirement on satisfaction with overall life and domains of life in the presence of personality characteristics. As retirement is often considered to be a choice and thus may be endogenous to individual‐level characteristics, we use the eligibility ages for basic state pension in the United Kingdom as instruments for retirement. We find that retirement increases leisure satisfaction of both males and females but not necessarily life satisfaction and income satisfaction. We further show that certain personality characteristics affect the well‐being of female retirees. For males, however, personality does not seem to matter in how they cope with retirement. (JEL I31, J26, A12, C23)     

MANDATORY RETIREMENT AND THE CONSUMPTION PUZZLE: DISENTANGLING PRICE AND QUANTITY DECLINES

This study investigates changes in household consumption at retirement based on a comprehensive, diary‐based household survey from China. We focus on disentangling price changes from quantity changes at retirement. The mandatory retirement policy in China provides a quasi‐experimental setting for nonparametric identification of the true causal effects of fully anticipated retirement. Using a regression discontinuity design, we find that food expenditure declines at retirement, particularly among the less‐educated group. We further show that this decline is driven by a reduction in prices rather than quantities. These findings, along with a documented increase in shopping time for food upon retirement among the less‐educated households, are consistent with a time allocation model in which education enhances the value of leisure. (JEL J26, C21)     

POLICY VARIATION,LABOR SUPPLY ELASTICITIES,AND A STRUCTURAL MODEL OF RETIREMENT

This paper exploits a combination of policy variation from multiple pension reforms in Austria and administrative data from the Austrian Social Security Database. Using the policy changes for identification, we estimate social security wealth and accrual elasticities in individuals' retirement decisions. Next, we use these elasticities to estimate a dynamic programming model of retirement decisions. Finally, we use the estimated model to examine the labor supply and welfare consequences of potential social security reforms. (JEL J26, H55)     

THE ROLE OF INFORMATION ON RETIREMENT PLANNING: EVIDENCE FROM A FIELD STUDY

Many households neglect the pivotal task of planning for retirement. Proposals to stimulate employees to save for retirement in the workplace include tax subsidies, which are costly, and using automatic defaults, which may not complement the heterogeneous preferences of savers. This randomized field study shows that an information‐based intervention increases reported retirement plan participation, emergency savings, and using a budget. Employees offered access to education increased actual retirement deferrals by $26 per month. These results suggest that retirement education programs may be an effective strategy to increase retirement planning and saving behavior. (JEL J26, D14, D91)     

Individual and Crossover Effects of Work Schedule Fit: A Within‐Couple Analysis

A couple‐level analysis with a sample of 105 female reduced‐hours physicians and their full‐time–employed husbands found individual and spouse crossover effects: Each spouse's ratings of own schedule fit predict own job‐role quality; wives' ratings of partner/family schedule fit predict their marital‐role quality, with a similar trend for husbands; husbands' ratings of own schedule fit predict wives' marital‐role quality; and husbands' ratings of partner/family schedule fit and wives' ratings of own schedule fit predict husbands' psychological distress. These findings highlight the interdependence of couple members' experiences and illustrate potential costs of wives' trading off time at work for time at home.     

Marital Quality and Spouses' Marriage Work With Close Friends and Each Other

Through in‐home interviews with 142 married couples, we explored how husbands' and wives' marriage work with close friends and one another was linked to their perceptions of marital quality. Results showed that husbands engaged in more marriage work with their wives than with close friends, whereas wives engaged in similar levels of marriage work with their close friends and husbands. For wives, marriage work with their spouses was found to moderate the relationship between marital quality and marriage work with friends. At low levels of marriage work with their spouses, wives' marriage work with friends was negatively related to their reports of marital love and positively related to reports of ineffective arguing. In contrast, at high levels of marriage work with their husbands, no significant relationship was found between wives' marriage work with friends and marital quality for wives. Findings underscore the role of spouses' friendships and suggest that the strength of spouses' ties to one another is linked to the social context they and their close friends create.     

If Momma Ain't Happy: Explaining Declines in Marital Satisfaction Among New Mothers

This study tests competing explanations for the link between the transition to motherhood and declines in wives' marital satisfaction. Using data from the first and second waves of the National Survey of Families and Households (N = 569), we found that new mothers' marital satisfaction declines could be attributed to reductions in wives' quality time spent with their husbands and to increases in perceptions of unfairness in housework. Family role traditionalization in the wake of the birth of a child did not directly explain marital satisfaction declines but was linked to perceptions of marital unfairness. Attendance at religious worship services did not moderate the association between the transition to motherhood and marital satisfaction changes.     

EMPLOYEE FINANCIAL LITERACY AND RETIREMENT PLAN BEHAVIOR: A CASE STUDY

This article uses administrative data on all active employees of the Federal Reserve (FR) System to examine participation in and contributions to the Thrift Saving Plan, the System's defined contribution (DC) plan. We link to administrative records a unique employee survey of economic/demographic factors including a set of financial literacy questions. Not surprisingly, FR employees are substantially more financially literate than the population at large. Most importantly, financially savvy employees are also most likely to participate in their DC plan. Sophisticated workers contribute three percentage points more of their earnings to the DC plan than do the less knowledgeable, and they hold more equity in their pension accounts. We examine changes in employee plan behavior 1 year after employees completed a Learning Module about retirement planning, and we compare it to baseline patterns. We find that those employees who completed the Learning Module were more likely to start contributing and less likely to have stopped contributing to the DC plan postsurvey. In sum, employer‐provided learning programs are shown to significantly impact employee retirement saving decisions and consistent with a lot of other research, higher levels of financial literacy are found to have a beneficial impact on retirement saving patterns. (JEL J3, H7)     

Retirement and marital decision making: Effects on retirement satisfaction

This study explores how partner's employment and preretirement decision‐making structures affect retirement satisfaction, using pooled data from Waves 1 to 4 of the Health and Retirement Surveys. Based on resource theory, the analyses indicate that retired husbands are least satisfied if their wives remain employed and had more say in decisions prior to the husband's retirement. Retired wives are least satisfied if their husbands remain employed and had more say in decisions prior to the wife's retirement. These results suggest that retirement transitions undermine married retirees’ satisfaction if they enhance the other partner's influence in the relationship. More research should address linkages between work and family realms during transitions such as retirement and explore the negotiation processes surrounding such transitions.     

Convergence or Continuity? The Gender Gap in Household Labor After Retirement

This research examined 2 hypotheses about the effect of retirement on couples' division of household labor. The continuity hypothesis posits that the gender gap in household labor remains unaffected by retirement, whereas the convergence hypothesis expects it to close. The authors tested these hypotheses using longitudinal data from the German Socio‐Economic Panel Study (N = 1,302 couples). Fixed effects models revealed that male breadwinners doubled up on total hours of household labor across their transition to retirement. This rise was accompanied by a concurrent, albeit less pronounced, decline in wives' hours. As a result, the gender gap in household labor was cut in half. This convergence involved a moderate trade‐off in female‐typed tasks of routine housework and an increase in husbands' hours spent on male‐typed tasks of repairs and gardening. The study concludes that gendered patterns of time use change substantially after retirement, rendering couples' division of household labor more equitable in later life.     

Family Stress During the Czech Transformation

Using three waves of data (1994–1996) from Czech households, we examined the mediating role of family interactions on the relation between 1994 family economic pressure and increased marital instability 1994–1996. The models demonstrate that economic pressure made both husbands and wives irritable, and their tension exacerbated problem behaviors (e.g., drinking and fighting) and depression. Husbands' problem behaviors generated hostility toward their wives, which increased wives' reports of greater marital instability. Wives' irritability increased their behavior problems, as well, but behavior problems were unrelated to wives' hostility or husbands' marital instability. Instead, wives' irritability directly increased their hostility toward their husbands, which in turn, increased husbands' reports of greater marital instability.     

Couple Attitudes and Agreement Regarding Pregnancy Wantedness in the Philippines

We compare husbands' and wives' views of the wantedness of their most recent pregnancy in the Philippines, a country where relatively high levels of unintended fertility persist. This research is an extension of earlier work that looked separately at individual men's and women's responses. We analyze survey data for 369 couples and find that those most at risk of experiencing a pregnancy that neither spouse wanted tended to be higher parity couples, those who were more fatalistic, those who were practicing Catholics who attended religious services frequently, and those among whom the husband was the sole breadwinner. Higher parity women and older women were also more apt to experience a pregnancy that was wanted by only 1 spouse. Women who had difficulty discussing sexual matters with their husbands were more likely than other women to have a pregnancy that their husbands wanted but they did not.     

PREDICTING DIVORCE AT MARITAL THERAPY INTAKE: WIVES' DISTRESS AND THE MARITAL STATUS INVENTORY*

The Marital Status Inventory (MSI), a measure of divorce potential was given to couples in six independent samples. Scores from the five clinical sites and one marital enrichment sample (N = 241 couples) were used to provide adequate reliability, discriminant validity and predictive validity data. Compound probability for the five clinical sites supports the contention that, overall, wives' are more distressed than their husbands. The MSI was also able to identify couples who later divorced. However, the Guttman properties of the MSI, previously identified, were not replicated. Clinical implications of the higher wives' scores for prediction of divorce and marital therapy are discussed.     

Intergenerational Support and Marital Satisfaction: Implications of Beliefs About Helping Aging Parents

Everyday support given to aging parents is a salient aspect of married life that may have implications for marital quality. Among 132 middle‐aged couples drawn from Wave 1 of the Family Exchanges Study, the authors examined the moderating effects of each spouse's normative and motivational beliefs about helping parents on associations between the frequency of everyday support that wives and husbands gave to their own parents and marital satisfaction. Husbands' more frequent provision of support was linked to wives' greater marital satisfaction when reports of personal rewards linked to helping parents were high for wives or low for husbands. Conversely, wives' more frequent provision of support was linked to husbands' lower marital satisfaction when reports of filial obligation were low for husbands or high for wives. Findings highlight the interdependence within couples and indicate that both spouses' perceptions are important in understanding linkages between intergenerational support and marital satisfaction.     

Economic Conditions,Spouse Support,and Psychological Distress of Rural Husbands and Wives1

Abstract Previous studies of the relation between economic conditions and psychological stress among farm operators are extended by comparing farming and nonfarming husbands' and wives' depressive symptoms and by including spouse support as both a mediating and a moderating variable. Using three waves of data from the Iowa Youth and Families Project, the analyses found few differences between farmers and nonfarmers, but the relation between economic pressure and distress operates differently for husbands and wives. For husbands, wives' support buffers the relation between economic pressure and husbands' sense of control over events in their lives, which in turn reduces depression. For wives, husbands' support both directly reduces their depression and buffers the effects of economic pressure on depression by weakening the relation between sense of control and feelings of depression.     

SOCIAL SECURITY AND RETIREMENT DECISIONS

One of the most striking features of the postwar U.S. economy has been the rapid decrease in the labor force participation of the elderly at a time when the health of this group has been improving. In spite of this, previous research, based on retrospective interviews with the retired population, usually concludes that poor health accounts for the overwhelming majority of retirements. This paper suggests that nothing could be further from the truth. Using data from the Panel Study of Income Dynamics, we follow a cohort of white married males through their sixties to estimate a model of retirement behavior. Using several definitions of retirement suggested in the literature, we find that the two key policy parameters of the social security system—the income guarantee and the implicit tax on earnings—exert an enormous influence on retirement decisions. For example, our results suggest that a decrease in the implicit tax rate on earnings from one-half to one-third would reduce the annual probability of retirement by about fifty percent! Applying the coefficient estimates to time series data on the labor force participation of the elderly implies that the social security system has been the major factor in the explosion in earlier retirement.     

PREDICTING DEPRESSION FROM MARITAL DISTRESS AND ATTRIBUTIONAL PROCESSES*

This study examined the interaction between marital distress and spouses' attributions and expectancies regarding the marital relationship in predicting depressive symptoms in a mixed sample of 59 clinic and nonclinic couples. The best single predictor of depression for both sexes was a measure of disaffection, reflecting emotional distance and alienation in the marriage. However, prediction of wives' depression in multiple regression analyses was enhanced by measures of overt marital disharmony, attribution of causality for relationship difficulties to their own behavior, and failure to attribute difficulties to their husbands' behavior. Regression analyses accounted for 55% of the variance in wives' depression, in contrast to only 32% for husbands. Treatment implications are discussed.     

Purchases,Penalties, and Power: The Relationship Between Earnings and Housework

Studies examining the association of housework with earnings have not tested for causal directionality despite competing theories about causal ordering. Autonomy theory and the relative resources, gender display, and gender deviance neutralization hypotheses suggest personal and relative earnings affect time in housework, whereas human capital theory implies the opposite. Using data from N = 3,719 continuously married couples in Waves 1 and 2 of the National Survey of Families and Households and structural equation modeling, the authors found that wives' personal earnings and housework are reciprocally related; her earnings have a stronger effect on housework than vice versa. For husbands, time in routine housework affects earnings only. The authors observed little evidence that relative earnings affect husbands' or wives' housework time; rather, they identified a significant effect of housework on one's share of couples' earnings. These results support autonomy theory for wives and a human capital perspective for both spouses.