Arbeitspapier

Reforms of an Early Retirement Pathway in Germany and Their Labor Market Effects

We investigate the unemployment pathway to retirement in Germany and study the causal effects of two early retirement reforms. Reform 1 (NRA) increased normal retirement age stepwise from 60 to 65. Simultaneously, it became possible to use early retirement with benefit discounts. Reform 2 (ERA) increased the age of early retirement stepwise from 60 to 63. We investigate behavioral responses to the reforms using administrative data and difference-in-differences strategies. We find strong and significant causal effects of both reforms. Individuals postponed retirement, stayed employed longer, postponed unemployment, and shifted to alternative pathways into retirement. The overall use of the retirement system declined by about 1.5 and 2 months per person after each of the two reforms. Individuals with low pension wealth and those who were affected immediately by the reform responded more strongly.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 14908

Klassifikation
Wirtschaft
Social Security and Public Pensions
Retirement; Retirement Policies
Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions
Thema
difference-in-differences
causal effects
labor force participation
program substitution
early retirement
effect heterogeneity

Ereignis
Geistige Schöpfung
(wer)
Riphahn, Regina T.
Schrader, Rebecca
Ereignis
Veröffentlichung
(wer)
Institute of Labor Economics (IZA)
(wo)
Bonn
(wann)
2021

Handle
Letzte Aktualisierung
10.03.2025, 11:41 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Riphahn, Regina T.
  • Schrader, Rebecca
  • Institute of Labor Economics (IZA)

Entstanden

  • 2021

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