Spousal Effect and Timing of Farmers' Early Retirement Decisions

The retirement decisions of individuals are strongly influenced by spousal retirement, financial incentives and institutional constraints such as access to early retirement benefits. In the European Union (EU), farm retirement is encouraged by early retirement provisions for farmers. As exit from farming determines the characteristics of structural change in agriculture, it is important to find out how spousal retirement and economic incentives affect the timing and type of retirement decisions among elderly farmers. This paper analyses the timing of early retirement decisions of farming couples using duration analysis and different exit channels. The empirical analysis is based on Finnish farm-level panel data for the period 1993-1998. The results suggest that an expected pension particularly advances farm transfers. Farming couples are found to co-ordinate their early retirement according to spousal retirement under other pension schemes.


Issue Date:
2005
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/24696
Total Pages:
15
JEL Codes:
J26; Q12; C41
Series Statement:
Contributed Paper




 Record created 2017-04-01, last modified 2017-08-24

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