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Changing incentives for early retirement - Causal evidence from a cohort based pension reform

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  • Geyer, Johannes
  • Engels, Barbara
  • Haan, Peter

Abstract

In this paper we exploit a cohort specific pension reform to estimate the causal employment effect of changes in the financial incentives to retire. In particular we analyze the effect of the introduction of pension deductions for early retirement on female employment. For the empirical analysis we use high-quality administrative data from the German Federal Pension Insurance (VSKT) and find positive and significant effects of the reform on employment.

Suggested Citation

  • Geyer, Johannes & Engels, Barbara & Haan, Peter, 2016. "Changing incentives for early retirement - Causal evidence from a cohort based pension reform," VfS Annual Conference 2016 (Augsburg): Demographic Change 145737, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc16:145737
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    Cited by:

    1. Geyer, Johannes & Haan, Peter & Hammerschmid, Anna & Peters, Michael, 2020. "Labor Market and Distributional Effects of an Increase in the Retirement Age," Labour Economics, Elsevier, vol. 65(C).
    2. Welteke, Clara & Geyer, Johannes & Haan, Peter, 2016. "Early retirement eligibility and employment behavior: evidence from a cohort based pension reform," VfS Annual Conference 2016 (Augsburg): Demographic Change 145783, Verein für Socialpolitik / German Economic Association.
    3. Ollonqvist, Joonas & Kotakorpi, Kaisa & Laaksonen, Mikko & Martikainen, Pekka & Pirttilä, Jukka & Tarkiainen, Lasse, 2021. "Incentives, Health, and Retirement: Evidence from a Finnish Pension Reform," Working Papers 145, VATT Institute for Economic Research.
    4. Qiushi Feng & Wei-Jun Jean Yeung & Zhenglian Wang & Yi Zeng, 2019. "Age of Retirement and Human Capital in an Aging China, 2015–2050," European Journal of Population, Springer;European Association for Population Studies, vol. 35(1), pages 29-62, February.
    5. Konle-Seidl, Regina, 2017. "Retention and re-integration of older workers into the labour market: What works?," IAB-Discussion Paper 201717, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Regina T. Riphahn & Rebecca Schrader, 2017. "Institutional reforms and an incredible rise in old age employment," Working Papers 169, Bavarian Graduate Program in Economics (BGPE).
    7. Johannes Geyer & Clara Welteke, 2017. "Closing Routes to Retirement: How Do People Respond?," Discussion Papers of DIW Berlin 1653, DIW Berlin, German Institute for Economic Research.

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    JEL classification:

    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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