Are indivduals who are active and doing household work prone to retire earlier: Evidence from the use survey of older Finns

This paper explains early retirement using Finnish time-use data for couples in 1999-2000 and follow up data on labour market status in 2000-2003. People busy in general stay in the labour market longer. However, non-work time activities such as household work and active leisure make retirement more attractive. Even though males do around one hour less household work per day than females throughout their different lifecycles, their retirement decision is most sensitive to the household work that they or their spouses supply. Household production model cannot explain this. We find joint household work unrelated to pecuniary incentives important, while find less support for mutual leisure to influence the retirement path.