(UM13-06) - Macroeconomic Determinants of Retirement Timing
Dmitriy Stolyarov and Yuriy Gorodnichenko
Several key macroeconomic variables such as unemployment rate, inflation and wage growth are thought to have significant and persistent effects on individuals’ retirement choices. This proposal seeks to use the SSA’s Continuous Work History Sample (CWHS) data (in conjunction with other microeconomic and macroeconomic data) to construct a long time series for the joint distribution of retirement ages and lifetime earnings in order to study the response of retirement timing to macroeconomic conditions. The length of the CWHS sample offers unique opportunities to shed new light on macroeconomic determinants of retirement choices. Results of this proposal are expected to inform policy debates, projections and designs.