Do Single Women Value Early Retirement more than Single Men?

Abstract

The focus of this paper is to analyse why a large fraction of single elderly people choose to retire early. A structural model directly based on the individual decision of labour supply is estimated on a sample of singles, where singles are defined as those who are living alone. We find that income and health are important determinants of the retirement decision. Furthermore, we find substantial gender differences in the retirement pattern. Healthy single women value retirement more than healthy single men and are willing to reduce their disposable income to 74 per cent of their previous income while men are willing to reduce the income to 81 per cent. Men’s retirement decision is mainly influenced by income and health, whereas women’s retirement decision is also affected by education and unemployment experience.retirement; gender differences; singles; panel data; option value