Social Mobility and Political Regimes: Intergenerational Mobility in Hungary, 1949-2017

A new GLO Discussion Paper finds that social mobility rates were low during the Communist regime, and did not change measurably during the transition; however, the composition of the political elite changed fast and sharply.

GLO Discussion Paper No. 889, 2021

Social Mobility and Political Regimes: Intergenerational Mobility in Hungary, 1949-2017 Download PDF
by
Bukowski, Paweł & Clark, Gregory & Gáspár, Attila & Pető, Rita

GLO Fellow Rita Pető

Rita Pető

Author Abstract: This paper measures social mobility rates in Hungary 1949-2017, for upper class and underclass families, using surnames to measure social status. In these years there were two very different social regimes. The first was the Hungarian People’s Republic, 1949-1989, a Communist regime with an avowed aim of favouring the working class. Then the modern liberal democracy, 1989-2020, a free-market economy. We find five surprising things. First, social mobility rates were low for both upper- and lower-class families 1949- 2017, with an underlying intergenerational status correlation of 0.6-0.8. Second, social mobility rates under communism were the same as in the subsequent capitalist regime. Third, the Romani minority throughout both periods showed even lower social mobility rates. Fourth, the descendants of the noble class in Hungary in the eighteenth century were still significantly privileged in 1949 and later. And fifth, while social mobility rates did not change measurably during the transition, the composition of the political elite changed fast and sharply.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

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Poor vs Non-Poor Households in Uruguay: Welfare Differences from Food Price Changes

A new GLO Discussion Paper evaluate the differential responses of poor households vs. non-poor households to changes in food expenditures and prices and simulate the welfare losses from food price changes across poverty definitions.

GLO Discussion Paper No. 890, 2021

Poor vs Non-Poor Households in Uruguay: Welfare Differences from Food Price Changes Download PDF
by
Echeverría, Lucía & Molina, José Alberto

GLO Fellow José Alberto Molina

José Alberto Molina

Author Abstract: Evidence suggests that household responses to price and income changes are significantly sensitive across income levels and rural-urban location. In this paper, we focus on poor households vs. non-poor households using two definitions of poverty, objective and subjective. We evaluate the differential responses of poor households vs. non-poor households to changes in food expenditures and prices and simulate the welfare losses from food price changes across poverty definitions. We use the QUAIDS model to estimate food elasticities with data from the National Expenditure and Household Income Survey, 2016-2017, from Uruguay. Expenditure elasticities at the food level reveal that bread and dairy products are a necessity-food category, regardless of the poverty status and across poverty definitions, while beverages are a luxury good. The demand sensitivity for the rest of the food categories differs by poverty status and poverty definitions. Uncompensated own-price elasticities indicate that when poverty is defined objectively, then changes in demand due to changes in price are greater for poor households (except for meat products). However, poor households, under the subjective definition, are more sensitive than non-poor households only to changes in beverage prices. Additionally, changes in household economic welfare due to price increases vary according to poverty status. On average, the percentage of total income needed to avoid a loss in economic welfare of poor households, defined by the objective method, is double that required by the non-poor households, for all price changes. However, differences are much smaller when using the subjective approach to measure poverty.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

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Something in the Pipe: Flint Water Crisis and Health at Birth

A new GLO Discussion Paper studies a natural experiment in the US to find that there are relevant effects of in utero exposure to polluted water on health at birth.

GLO Discussion Paper No. 887, 2021

Something in the Pipe: Flint Water Crisis and Health at Birth Download PDF
by
Wang, Rui & Chen, Xi & Li, Xun

GLO Fellow Xi Chen

Xi Chen

Author Abstract: In 2014, the city of Flint, MI in the U.S. changed its public water source, resulting in severe water contamination and a public health crisis. Using the Flint Water Crisis as a natural experiment, we estimate the effect of in utero exposure to polluted water on health at birth. Matching vital statistics birth records with various sources of data, we use a Synthetic Control Method (SCM) to identify the causal impact of water pollution on key birth outcomes. Our results suggest that the crisis modestly increased the rate of low birth weight (LBW) by 1.8 percentage points (or 15.5 percent) but had little effect on the length of gestation or rate of prematurity. However, these effects are larger among children born to black mothers, as indicated by an increase in the rate of LBW by 2.5 percentage points (or 19 percent). Children born to white mothers exhibit, on average, a 30.1-gram decrease in birth weight. We find little evidence that the male-to-female sex ratio declines in the overall population, suggesting that the inutero scarring effect of the Flint Water Crisis may dominate the channel of mortality selection. However, we observe a slight decline in the sex ratio among children born to black mothers. Finally, we find no notable change in the fertility rates of either black women or white women in Flint. These results are robust to a rich set of placebo and falsification tests. Our findings highlight the importance and urgency of upgrading U.S. aging, lead-laced water systems in promoting racial and ethnic health equity.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

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The impact of weather on time allocation to physical activity and sleep of child-parent dyads

A new GLO Discussion Paper suggests that extreme weather conditions, including those associated with climate change, could make children vulnerable to reduced physical activity.

GLO Discussion Paper No. 886, 2021

The impact of weather on time allocation to physical activity and sleep of child-parent dyads Download PDF
by
Nguyen, Ha Trong & Christian, Hayley & Le, Huong Thu & Connelly, Luke & Zubrick, Stephen R. & Mitrou, Francis

GLO Fellows Ha Nguyen, Huong Le, & Luke Connelly

Author Abstract: This study explores the differential impact of weather on time allocation to physical activity and sleep by children and their parents. We use nationally representative data with time use indicators objectively measured on multiple occasions for more than 1,100 child-parent pairs, coupled with daily meteorological data. Employing an individual fixed effects regression model to estimate the causal impact of weather, we find that unfavourable weather conditions, as measured by cold or hot temperatures or rain, cause children to reduce physical activity time and increase sedentary time. However, such weather conditions have little impact on children’s sleep time or the time allocation of their parents. We also find substantial differential weather impact, especially on children’s time allocation, by weekdays/weekends and parental employment status, suggesting that these factors may contribute to explaining the differential weather impact that we observed. Our results additionally provide evidence of adaptation, as temperature appears to have a more pronounced impact on time allocation in colder months and colder regions. The results suggest that extreme weather conditions, including those associated with climate change, could make children vulnerable to reduced physical activity.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

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Call for contributions: 37th EBES Conference in collaboration with FOM University and GLO, Berlin/Germany, October 6-8, 2021. Submission deadline for abstracts is August 20!

Interested researchers are cordially invited to submit their abstracts or papers for presentation consideration. The 37th EBES Conference in Berlin will take place on October 6-8 2021 in Hybrid Mode (online and in-person). GLO is a co-organizing partner, and FOM University of Applied Sciences is the local host.

This is a GLO supported event. EBES is the Eurasia Business and Economics Society, a strategic partner and institutional supporter of GLO as well as FOM University of Applied Sciences. GLO President Klaus F. Zimmermann is also President of EBES. FOM and GLO will organize own sessions for the event.

Invited Speakers

EBES is pleased to announce that distinguished colleagues Dorothea Schäfer, Klaus F. Zimmermann and Marco Vivarelli will participate as keynote speakers and/or invited editors.

Dorothea Schäfer is the Research Director of Financial Markets at the German Institute for Economic Research (DIW Berlin) and Adjunct Professor of Jönköping International Business School, Jönköping University. She has also worked as an evaluator for the European Commission, the Federal Ministry of Education and Research and Chairwoman of Evaluation Committee for LOEWE (Landes-Offensive zur Entwicklung Wissenschaftlich-ökonomischer Exzellenz des Bundeslandes Hessen). She managed various research projects supported by the Deutsche Forschungsgemeinschaft (DFG), the EU Commission, the Fritz Thyssen Foundation and the Stiftung Geld und Währung. Her researches were published in various journals such as Journal of Financial Stability; German Economic Review; International Journal of Money and Finance; and Small Business Economics. She is regularly invited as an expert in parliamentary committees, including the Finance Committee of the Bundestag and gives lectures on financial market issues in Germany and abroad. She is also a member of the Editorial Board and Editor-in-Chief of the policy-oriented journal “Vierteljahrshefte zur Wirtschaftsforschung” and Editor-in-Chief of Eurasian Economic Review. Her research topics include financial crisis, financial market regulation, financing constraints, gender, and financial markets, financial transaction tax.

Klaus F. Zimmermann is President of the Global Labor Organization (GLO); Co-Director of POP at UNU-MERIT; Full Professor of Economics at Bonn University (em.); Honorary Professor, Maastricht University, Free University of Berlin and Renmin University of China; Member, German Academy of Sciences Leopoldina, Regional Science Academy, and Academia Europaea (Chair of its Section for Economics, Business and Management Sciences). Among others, he has worked at Macquarie University, the Universities of Melbourne, Princeton, Harvard, Munich, Kyoto, Mannheim, Dartmouth College and the University of Pennsylvania. Research Fellow of the Centre for Economic Policy Research (CEPR) and Fellow of the European Economic Association (EEA). Editor-in-Chief of the Journal of Population Economics. Editorial Board of International Journal of Manpower, Research in Labor Economics and Comparative Economic Studies, among others. Founding Director, Institute for the Study of Labor (IZA); Past-President, German Institute for Economic Research (DIW). Distinguished John G. Diefenbaker Award 1998 of the Canada Council for the Arts; Outstanding Contribution Award 2013 of the European Investment Bank. Rockefeller Foundation Policy Fellow 2017; Eminent Research Scholar Award 2017, Australia; EBES Fellow Award 2018. He has published in many top journals including Journal of Economic Perspectives, American Economic Review, Econometrica, Journal of the European Economic Association, Journal of Human Resources, Journal of Applied Econometrics, Public Choice, Review of Economics and Statistics, Journal of Population Economics and Journal of Public Economics. His research fields are population, labor, development, and migration.

Marco Vivarelli is a full professor at the Catholic University of Milano, where he is also Director of the Institute of Economic Policy. He is Professorial Fellow at UNU-MERIT, Maastricht; Research Fellow at IZA; Fellow of the Global Labor Organization (GLO). He is member of the Scientific Executive Board of the Eurasia Business and Economics Society (EBES); member of the Scientific Advisory Board of the Austrian Institute of Economic Research (WIFO, Vienna) and has been scientific consultant for the International Labour Office (ILO), World Bank (WB), the Inter-American Development Bank (IDB), the United Nations Industrial Development Organization (UNIDO) and the European Commission. He is Editor-in-Chief of the Eurasian Business Review, Editor of Small Business Economics, Associate Editor of Industrial and Corporate Change, Associate Editor of Economics EJournal, member of the Editorial Board of Sustainability and he has served as a referee for more than 70 international journals. He is author/editor of various books and his papers have been published in journals such as Cambridge Journal of Economics, Canadian Journal of Economics, Economics Letters, Industrial and Corporate Change, International Journal of Industrial Organization, Journal of Economics, Journal of Evolutionary Economics, Journal of Productivity Analysis, Labour Economics, Oxford Bulletin of Economics and Statistics, Regional Studies, Research Policy, Small Business Economics, Southern Economic Journal, World Bank Research Observer, and World Development. His current research interests include the relationship between innovation, employment, and skills; the labor market and income distribution impacts of globalization; the entry and post-entry performance of newborn firms.

Executive Board

Prof. Klaus F. Zimmermann, UNU-MERIT, Maastricht, and Free University Berlin
Prof. Jonathan Batten, University Utara Malaysia, Malaysia
Prof. Iftekhar Hasan, Fordham University, U.S.A.
Prof. Euston Quah, Nanyang Technological University, Singapore
Prof. John Rust, Georgetown University, U.S.A.
Prof. Dorothea Schäfer, German Institute for Economic Research DIW Berlin, Germany
Prof. Marco Vivarelli, Università Cattolica Del Sacro Cuore, Italy

Abstract/Paper Submission

Authors are invited to submit their abstracts or papers no later than August 20, 2021

For submission, please visit our website at https://ebesweb.org/37th-ebes-conference/37th-ebes-conference-berlin-abstract-submission/ no submission fee is required.

General inquiries regarding the call for papers should be directed to ebes@ebesweb.org.

Publication Opportunities

Qualified papers can be published in EBES journals (Eurasian Business Review and Eurasian Economic Review) or EBES proceedings books after a peer review process without any submission or publication fees. EBES journals (EABR and EAER) are published by Springer and both are indexed in the SCOPUSEBSCO EconLit with Full TextGoogle ScholarABS Academic Journal Quality GuideCNKIEBSCO Business SourceEBSCO Discovery ServiceProQuest International Bibliography of the Social Sciences (IBSS)OCLC WorldCat Discovery ServiceProQuest ABI/INFORMProQuest Business Premium CollectionProQuest CentralProQuest Turkey DatabaseProQuest-ExLibris PrimoProQuest-ExLibris SummonResearch Papers in Economics (RePEc)Institute of Scientific and Technical Information of ChinaNaverSCImago, ABDC Journal Quality List, Cabell’s Directory, and Ulrich’s Periodicals Directory. In addition, while EAER is indexed in the Emerging Sources Citation Index (Clarivate Analytics), EABR is indexed in the Social Science Citation Index (SSCI) and Current Contents / Social & Behavioral Sciences

Also, all accepted abstracts will be published electronically in the Conference Program and the Abstract Book (with an ISBN number). It will be distributed to all conference participants at the conference via USB. Although submitting full papers are not required, all the submitted full papers will also be included in the conference proceedings in a USB.

After the conference, participants will also have the opportunity to send their paper to be published (after a refereeing process managed by EBES) in the Springer’s series Eurasian Studies in Business and Economics (no submission and publication fees). This is indexed by Scopus. It will also be sent to Clarivate Analytics in order to be reviewed for coverage in the Conference Proceedings Citation Index – Social Science & Humanities (CPCI-SSH). Please note that the 10th, 11th, 12th, 13th, 14th, 15th, 16th, 17th, 18th, 19th, 20th (Vol. 2), 21st, and 24th EBES Conference Proceedings are accepted for inclusion in the Conference Proceedings Citation Index – Social Science & Humanities (CPCI-SSH). Other conference proceedings are in progress.

Important Dates

Conference Date: October 6-8, 2021
Abstract Submission Deadline: August 20, 2021
Reply-by: August 23, 2021*
Registration Deadline: August 31, 2021
Submission of the Virtual Presentation: August 31, 2021
Announcement of the Program: September 10, 2021
Paper Submission Deadline (Optional): August 23, 2021**
Paper Submission for the EBES journals: November 16, 2021

* The decision regarding the acceptance/rejection of each abstract/paper will be communicated with the corresponding author within a week of submission.

** Completed paper submission is optional. If you want to be considered for the Best Paper Award or your full paper to be included in the conference proceedings in the USB, after submitting your abstract before August 20, 2021, you must also submit your completed (full) paper by August 31, 2021.

Contact

Ugur Can, Director of EBES (ebes@ebesweb.org)
Dr. Ender Demir, Conference Coordinator of EBES (demir@ebesweb.org)

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Bye, bye, Hotel Mama, bye, bye good grades? Living in a student room and exam results in tertiary education.

A new GLO Discussion Paper finds that living in a student room as a tertiary education student in Belgium (instead of commuting between one’s parental residence and college or university) does not affect exam results.

GLO Discussion Paper No. 885, 2021

Bye, bye, Hotel Mama, bye, bye good grades? Living in a student room and exam results in tertiary education Download PDF
by
Amez, Simon & Baert, Stijn

GLO Fellow Stijn Baert

Stijn Baert

Author Abstract: We study whether living in a student room as a tertiary education student (instead of commuting between one’s parental residence and college or university) affects exam results. To the best of our knowledge, we are the first to study this relationship beyond cross-sectional analysis. That is, we exploit rich longitudinal data on 1,653 Belgian freshmen students’ residential status and exam scores to control for observed heterogeneity as well as for individual fixed (or random) effects. We find that after correcting for unobserved heterogeneity, the association found in earlier contributions disappears. This finding of no significant impact of living in a student room on exam results is robust for other methods used for causal inference including instrumental variable techniques.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

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The Labor Market Integration of Refugees and other Migrants in Germany

A new GLO Discussion Paper confirms that refugees and other migrants are less likely to be employed than natives and the employment gap is much higher for refugees.

GLO Discussion Paper No. 884, 2021

The Labor Market Integration of Refugees and other Migrants in Germany Download PDF
by
Bedaso, Fenet

GLO Affiliate Fenet Jima Bedaso

Author Abstract: Using the panel data from 1995 to 2019, this paper investigates the labor market integration of non-EU immigrants in Germany. The existing evidence shows that the economic outcomes of migrants are far behind natives. However, immigrants are a heterogeneous group in terms of their motives for migration and skills composition. In this paper, I disentangle immigrants into refugees and other migrants and compare the employment probability gap between refugees, other migrants, and natives. I also examine whether refugees have a lower employment outcome than other migrants and to what extent the level of education, language proficiency, health status, years since migration, and cohort effects explain the employment gap between the refugees and other migrants. The result confirms that refugees and other migrants are less likely to be employed than natives and the employment gap is much higher for refugees. I also find evidence of heterogeneity across gender. Other migrant men do not significantly differ from native men in the probability of being employed. In contrast, refugee women have an economic disadvantage than other migrant women and native women. I find no evidence that health status differences attribute to the employment gap between refugees, other migrants, and natives. Finally, this paper highlights the importance of the migration category when assessing the integration of immigrants into the labor market.

Featured image: Ra-Dragon-on-Unsplash

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

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The ugly truth about social welfare payments and households’ subjective well-being

A new GLO Discussion Paper finds for South Africa that the highest household income quintiles claim social welfare payments meant for the poor, most likely leading to increased inequality.

GLO Discussion Paper No. 883, 2021

The ugly truth about social welfare payments and households’ subjective well-being Download PDF
by
Adhikari, Tamanna & Greyling, Talita & Rossouw, Stephanie

GLO Fellows Tamanna Adhikari, Talita Greyling and Stephanie Rossouw

Author Abstract: Social welfare payments (SWP) were designed with policy priority to transfer revenue to vulnerable groups, thereby addressing poverty and inequality. Previous studies have shown that SWPs alleviate poverty, but investigating their effect on well-being is sparse. We investigate the relationship between SWPs and the mean subjective well-being (SWB) of a household and analyse it across household income quintiles. We use the National Income Dynamics Study dataset, which is representative of South Africa. South Africa is an example of extremes, as it suffers from poverty, inequality, and low levels of SWB; yet, paradoxically, it has an exemplary social welfare system. We use a range of analytical methods, including ordered probit regressions and a quasi-experimental technique. We find that the highest household income quintiles claim SWPs meant for the poor, most likely leading to increased inequality. Additionally, SWPs are positively related to SWB for quintiles one to four, but the relationship is negative in the highest quintile.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

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Minimum working age and the gender mortality gap

A new paper published ONLINE FIRST freely accessible finds that the minimum working age raised from 14 to 16 in Spain, while the compulsory education age remained at 14. The reform decreased mortality at ages 14–29 among men by 6.4% and women by 8.9%, mainly from a reduction in deaths due to traffic accidents. However, the reform also increased mortality for women ages 30–45 by 7%.

Minimum working age and the gender mortality gap

by Cristina Bellés-Obrero, Sergi Jiménez-Martín & Judit Vall Castello

Published ONLINE FIRST 2021: Journal of Population Economics
READLINK: https://rdcu.be/cq2lY

This image has an empty alt attribute; its file name is 002-Cover-Page-JPopEa.jpg

Author Abstract: In 1980, a few years after its democratization process, Spain raised the minimum working age from 14 to 16, while the compulsory education age remained at 14. This reform changed the within-cohort incentives to remain in the educational system. We use a difference-in-differences approach, where our treated and control individuals only differ in their month of birth, to analyze the gender asymmetries in mortality generated by this change. The reform decreased mortality at ages 14–29 among men by 6.4% and women by 8.9%, mainly from a reduction in deaths due to traffic accidents. However, the reform also increased mortality for women ages 30–45 by 7%. This is driven by increases in HIV mortality, as well as by diseases related to the nervous and circulatory systems. We show that women’s health habits deteriorated as a consequence of the reform, while this was not the case for men. The gender differences in the impact of the reform on smoking and drinking should be understood in the context of the gender equalization process that affected women were experiencing when the reform took place. All in all, these patterns help explain the narrowing age gap in life expectancy between women and men in many developed countries while, at the same time, they provide important policy implications for middle-income countries that are undergoing those gender equalization processes right now.

Number of submissions, 2010-2020
EiC Report 2020

SSCI IMPACT FACTOR 2.813 (2020) from 1.840 (2019) & 1.253 (2018)
SSCI 5-Year Impact Factor 3.318 (2020) from 2.353 (2019) & 2.072 (2018)


Journal of Population Economics
Access to the recently published Volume 34, Issue 3, July 2021.

LEAD ARTICLE OF ISSUE 3, 2021:
The safest time to fly: pandemic response in the era of Fox News
by Maxim Ananyev, Michael Poyker and Yuan Tian

OPEN ACCESS: Free ReadlinkDownload PDF




The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

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Retirement, housing mobility, downsizing and neighbourhood quality

A new GLO Discussion Paper shows that retirement leads to a statistically significant and sizable increase in the probability of making a residential move or the likelihood of becoming outright homeowners.

GLO Discussion Paper No. 882, 2021

Retirement, housing mobility, downsizing and neighbourhood quality – A causal investigation Download PDF
by
Nguyen, Ha Trong & Mitrou, Francis & Zubrick, Stephen R.

GLO Fellow Ha Nguyen

Ha Nguyen

Author Abstract: This paper provides the first causal evidence on the impact of retirement on housing choices. Our empirical strategy exploits the discontinuity in the eligibility ages for state pension as an instrument for the endogenous retirement decision and controls for time-invariant individual characteristics. The results show that retirement leads to a statistically significant and sizable increase in the probability of making a residential move or the likelihood of becoming outright homeowners. We also find that individuals downsize both physically and financially and tend to move to better neighbourhoods or closer to the coast upon retirement. We additionally discover that some housing adjustments take place up to 6 years before retirement. Moreover, our results reveal significant heterogeneity in the retirement impact by gender, marital status, education, housing tenue, income and wealth. Within couple households, housing mobility choices are primarily influenced by the wife’s retirement while housing downsizing decisions are only affected by the husband’s retirement. The results suggest that failing to address the endogeneity of retirement often under-states the retirement impact on such housing arrangements.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.

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