Evaluation of the HRS and RHS from a Decision-Theoretic Perspective

This paper has 3 objectives: 1) it presents a structural econometric DP model of retirement behavior that requires extensive datasets such as RHS and HRS, 2) it evaluates the pros and cons of the overall survey design of the RHS and HRS from the standpoint of a person interested in estimating a DP model, and 3) it provides a comparative data analysis of key variables in the RHS and HRS. The results of the data analysis indicate that relative to the RHS male primary respondents work less, have substantially higher total family income (but not much higher labor income) and are significantly more likely to apply for Social Security early retirement benefits at age 62. Part of the reason why total family income has increased much more than labor income of male primary respondents is due to increased labor force participation on the part of the spouse. Levels of education and home ownership are significantly higher in the HRS, and the housing continues to remain the predominant component of family net worth.

HRS content and design

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