1. Ageing, health and retirement in Europe: Time use, health and retirement A report by Hannu Piekkola And Luisa Leijola (ETLA) Some comments by Florence Legros (U. Paris Dauphine)

2. Global idea The value of time is an important variable when people decide to retire: Its weight depends on the health status; Its weight depends on the health status; Its weight depends on a trade off between household work and paid work (men/women); Its weight depends on a trade off between household work and paid work (men/women); It depends on the nature of the pension scheme (ie «conservative/corporatist » – Bismarckian ? -  domestic work =  pension). It depends on the nature of the pension scheme (ie «conservative/corporatist » – Bismarckian ? -  domestic work =  pension).

3. Meets the problem of the adequate accrual rate (NA at the margin) Eco. Opt. Accrual 6% in France Soc. Opt. accrual/high incomes 8% ??? Soc. Opt. accrual/low incomes 10% Life expectancy when 60, France.

4. Decision to retire depends on: health status; health status; a trade off between household work and paid work (women value less paid work than men); a trade off between household work and paid work (women value less paid work than men); the nature of the pension scheme (ie «conservative/corporatist » – Bismarckian? -  domestic work =  pension) the nature of the pension scheme (ie «conservative/corporatist » – Bismarckian? -  domestic work =  pension) Existence of an alternative  Existence of an alternative

5. Raises some questions Data about household work value ? Are «communal household helps» wage the adequate variable? Data about household work value ? Are «communal household helps» wage the adequate variable? What about the demand from firms ? What about the demand from firms ? What about households’ savings (Gruber and Wise model without savings) and wealth? What about households’ savings (Gruber and Wise model without savings) and wealth?

6. Interesting results Impact of health status on option value depends of the macroeconomic policy. EX: Finland where high income women with poor health are encouraged to work later (  option value curve at all ages) Impact of health status on option value depends of the macroeconomic policy. EX: Finland where high income women with poor health are encouraged to work later (  option value curve at all ages) “Economic incentives may work poorly unless the time use allocation decisions are properly taken into account.” “Economic incentives may work poorly unless the time use allocation decisions are properly taken into account.”

7. A question What about information? Casamatta, Cremer and Pestieau (2004) «Disability testing and retirement » (IDEI WP) show that, in the presence of imperfect information, it can be optimal to «promote » early retirement.

8. A good new « the time-use patterns of women and men become more similar after retirement ». (i.e. domestic work is clearly an alternative for paid work after retirement) A bad new « the time-use patterns of women and men become more similar after retirement ».

9. Me, I find it normal that women do earn less than males: with all the domestic work you must do, you cannot invest yourself in your job as much as we – males – do.