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The pension incentive to retire: Empirical evidence for West Germany

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Author Info
Sikandar Siddiqui () (UniversitÄt Hamburg, Arbeitsbereich MakroÃkonomie und quantitative Wirtschaftspolitik, Von Melle-Park 5, D-20146 Hamburg, Germany)

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Abstract

In this paper, the impact of the West German pension system on the retirement decisions of elderly citizens is analyzed within the framework of a discrete-time hazard rate model deduced from a micro-economic decision rule. The model is estimated using a panel dataset of elderly West German citizens. In order to improve the precision of the estimates obtained, the data from the sample are combined with aggregate-level information on the labour force participation behaviour of the elderly. Policy simulations based on the estimates reveal that the probability of early retirement can be reduced significantly by appropriate changes in the pension system.

JEL classification: C32, C41, J26

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Publisher Info
Article provided by Springer in its journal Journal of Population Economics.

Volume (Year): 10 (1997)
Issue (Month): 4 ()
Pages: 463-486
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Handle: RePEc:spr:jopoec:v:10:y:1997:i:4:p:463-486

Note: Received September 6, 1995 / Accepted: August 28, 1996
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Related research
Keywords: Retirement · pensions · hazard rates;

Other versions of this item:

Find related papers by JEL classification:
C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions
C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis
J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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This page was last updated on 2009-11-25.


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