Introduction
Housework at retirement
Method
Results
Discussion
Non-cognitive skills and the economic role of
home-production during a transition to retirement
Bernardo Fonseca Nunesa
a
Behavioural Science Centre, University of Stirling
Family Finance Surveys Users Conference, London, 1st of July 2015
Non-cognitive skills and the economic role of home-production during a transition to retirement
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Introduction
Housework at retirement
Method
Results
Discussion
Outline
1
Introduction
2
Housework at retirement
3
Method
Data
Empirical strategy
4
Results
5
Discussion
Non-cognitive skills and the economic role of home-production during a transition to retirement
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Introduction
Housework at retirement
Method
Results
Discussion
Outline
1
Introduction
2
Housework at retirement
3
Method
Data
Empirical strategy
4
Results
5
Discussion
Non-cognitive skills and the economic role of home-production during a transition to retirement
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Introduction
Housework at retirement
Method
Results
Discussion
Housework at retirement
Cooking, cleaning, doing laundry and grocery shopping
New retirees increase their housework hours:
Non-cognitive skills (personality traits) explain
heterogeneity
Associated with household and individual consumption
measures
Data from the British Household Panel Survey
Non-cognitive skills and the economic role of home-production during a transition to retirement
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Introduction
Housework at retirement
Method
Results
Discussion
The economic role of housework
Home production substitutes market goods and services
By doing housework, a retiree:
Spends new time endowment
Substitute market goods by home-production
Make a decision related to effort, productivity and desired
living standard
Non-cognitive skills and the economic role of home-production during a transition to retirement
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Introduction
Housework at retirement
Method
Results
Discussion
The economic role of housework
Home production substitutes market goods and services
By doing housework, a retiree:
Spends new time endowment
Substitute market goods by home-production
Make a decision related to effort, productivity and desired
living standard
Non-cognitive skills and the economic role of home-production during a transition to retirement
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Introduction
Housework at retirement
Method
Results
Discussion
The economic role of housework
Home production substitutes market goods and services
By doing housework, a retiree:
Spends new time endowment
Substitute market goods by home-production
Make a decision related to effort, productivity and desired
living standard
Non-cognitive skills and the economic role of home-production during a transition to retirement
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Introduction
Housework at retirement
Method
Results
Discussion
Integration non-cognitive skills into Economics
Big Five personality inventory (see Heckman, 2011)
1
Openness to experience
2
Conscientiousness
3
Extraversion
4
Agreeableness
5
Neuroticism
Help social scientists to
1
explain the heterogeneity of an average causal effect
2
better predict socio-economic outcomes
3
design economic policies according to groups’/clusters’
characteristics
Non-cognitive skills and the economic role of home-production during a transition to retirement
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Introduction
Housework at retirement
Method
Results
Discussion
Integration non-cognitive skills into Economics
Big Five personality inventory (see Heckman, 2011)
1
Openness to experience
2
Conscientiousness
3
Extraversion
4
Agreeableness
5
Neuroticism
Help social scientists to
1
explain the heterogeneity of an average causal effect
2
better predict socio-economic outcomes
3
design economic policies according to groups’/clusters’
characteristics
Non-cognitive skills and the economic role of home-production during a transition to retirement
6 / 24
Introduction
Housework at retirement
Method
Results
Discussion
Integration non-cognitive skills into Economics
Big Five personality inventory (see Heckman, 2011)
1
Openness to experience
2
Conscientiousness
3
Extraversion
4
Agreeableness
5
Neuroticism
Help social scientists to
1
explain the heterogeneity of an average causal effect
2
better predict socio-economic outcomes
3
design economic policies according to groups’/clusters’
characteristics
Non-cognitive skills and the economic role of home-production during a transition to retirement
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Introduction
Housework at retirement
Method
Results
Discussion
Outline
1
Introduction
2
Housework at retirement
3
Method
Data
Empirical strategy
4
Results
5
Discussion
Non-cognitive skills and the economic role of home-production during a transition to retirement
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Introduction
Housework at retirement
Method
Results
Discussion
Housework at retirement
Retirement-savings puzzle
(Banks et al., 1998)
Home production hypothesis
(Luengo-Prado and Sevilla,
2013)
Non-cognitive skills and the economic role of home-production during a transition to retirement
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Introduction
Housework at retirement
Method
Results
Discussion
Housework at retirement
Retirement-savings puzzle
(Banks et al., 1998)
Home production hypothesis
(Luengo-Prado and Sevilla,
2013)
Non-cognitive skills and the economic role of home-production during a transition to retirement
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Introduction
Method
Housework at retirement
Results
Discussion
Outline
1
Introduction
2
Housework at retirement
3
Method
Data
Empirical strategy
4
Results
5
Discussion
Non-cognitive skills and the economic role of home-production during a transition to retirement
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Introduction
Housework at retirement
Method
Results
Discussion
Data
British Household Panel Survey
Longitudinal data (Waves 15-18), aged >= 55:
Hours spent on housework tasks
Non-cognitive skills (Big Five)
Consumption scales (leisure, eating out, grocery and food)
Transitions to retirement (group of interest, N=319)
Stayed in the labour market (control group, N=3,390)
Non-cognitive skills and the economic role of home-production during a transition to retirement
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Introduction
Housework at retirement
Method
Results
Discussion
Data
British Household Panel Survey
Longitudinal data (Waves 15-18), aged >= 55:
Hours spent on housework tasks
Non-cognitive skills (Big Five)
Consumption scales (leisure, eating out, grocery and food)
Transitions to retirement (group of interest, N=319)
Stayed in the labour market (control group, N=3,390)
Non-cognitive skills and the economic role of home-production during a transition to retirement
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Introduction
Housework at retirement
Method
Results
Discussion
Data
British Household Panel Survey
Longitudinal data (Waves 15-18), aged >= 55:
Hours spent on housework tasks
Non-cognitive skills (Big Five)
Consumption scales (leisure, eating out, grocery and food)
Transitions to retirement (group of interest, N=319)
Stayed in the labour market (control group, N=3,390)
Non-cognitive skills and the economic role of home-production during a transition to retirement
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Introduction
Housework at retirement
Method
Results
Discussion
Data
British Household Panel Survey
Longitudinal data (Waves 15-18), aged >= 55:
Hours spent on housework tasks
Non-cognitive skills (Big Five)
Consumption scales (leisure, eating out, grocery and food)
Transitions to retirement (group of interest, N=319)
Stayed in the labour market (control group, N=3,390)
Non-cognitive skills and the economic role of home-production during a transition to retirement
10 / 24
Introduction
Housework at retirement
Method
Results
Discussion
Data
British Household Panel Survey
Longitudinal data (Waves 15-18), aged >= 55:
Hours spent on housework tasks
Non-cognitive skills (Big Five)
Consumption scales (leisure, eating out, grocery and food)
Transitions to retirement (group of interest, N=319)
Stayed in the labour market (control group, N=3,390)
Non-cognitive skills and the economic role of home-production during a transition to retirement
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Introduction
Housework at retirement
Method
Results
Discussion
Empirical strategy
Potential outcomes framework
∆hit,S=1 = α + δ + ρΘi + κXit + wt + εit
(1)
∆hit,S=0 = α + ρΘi + κXit + wt + εit
δ = E ∆hit,S=1 − E ∆hit,S=0
(2)
(3)
∆hit = change in housework hours , Sit is an indicator variable
=1 for a transition to retirement (and zero otherwise), Θi is a
vector of non-cognitive skills, Xit is a vector of HH and
individual characteristics, δ is the average effect of retirement
on housework change.
Non-cognitive skills and the economic role of home-production during a transition to retirement
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Introduction
Housework at retirement
Method
Results
Discussion
Outline
1
Introduction
2
Housework at retirement
3
Method
Data
Empirical strategy
4
Results
5
Discussion
Non-cognitive skills and the economic role of home-production during a transition to retirement
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Introduction
Housework at retirement
Method
Results
Discussion
Results
Housework change at retirement - hours/week
Non-cognitive skills and the economic role of home-production during a transition to retirement
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Introduction
Housework at retirement
Method
Results
Discussion
Results
Personality and housework change at retirement
Non-cognitive skills and the economic role of home-production during a transition to retirement
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Introduction
Housework at retirement
Method
Results
Discussion
Results
Personality and consumption before retirement
Non-cognitive skills and the economic role of home-production during a transition to retirement
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Introduction
Housework at retirement
Method
Results
Discussion
Results
Predicted housework levels (hours per week):
Non-cognitive skills and the economic role of home-production during a transition to retirement
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Introduction
Housework at retirement
Method
Results
Discussion
Results
Predicted leisure expenditures (scale 0-12):
Non-cognitive skills and the economic role of home-production during a transition to retirement
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Introduction
Housework at retirement
Method
Results
Discussion
Results
Predicted eating out expenditures (scale 0-12):
Non-cognitive skills and the economic role of home-production during a transition to retirement
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Introduction
Housework at retirement
Method
Results
Discussion
Results
Predicted HH grocery and food bill (scale 1-12):
Non-cognitive skills and the economic role of home-production during a transition to retirement
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Introduction
Housework at retirement
Method
Results
Discussion
Results
Extraversion explains heterogeneity
Non-cognitive skills and the economic role of home-production during a transition to retirement
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Introduction
Housework at retirement
Method
Results
Discussion
Results
Robustness check with MPS
Non-cognitive skills and the economic role of home-production during a transition to retirement
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Introduction
Housework at retirement
Method
Results
Discussion
Results
Balancing condition: Kernel MPS
Non-cognitive skills and the economic role of home-production during a transition to retirement
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Introduction
Housework at retirement
Method
Results
Discussion
Outline
1
Introduction
2
Housework at retirement
3
Method
Data
Empirical strategy
4
Results
5
Discussion
Non-cognitive skills and the economic role of home-production during a transition to retirement
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Introduction
Housework at retirement
Method
Results
Discussion
Discussion
Home-production and non-cognitive skills
Personality traits explain heterogeneity;
Housework is part of life-time wealth;
Older people’s consumption patterns and home
production;
Beyond gender differences and HH composition.
Non-cognitive skills and the economic role of home-production during a transition to retirement
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Bernardo Fonseca Nunes
Behavioural Science Centre
Twitter: @_bernardofn
University of Stirling
Scotland
Email: [email protected]
www.stir.ac.uk
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