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Disability retirement and unemployment - substitute pathways for labour force exit? An empirical test for the case of Germany

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  • Regina Riphahn

Abstract

This paper studies the determinants of disability retirement and unemployment of older workers, two labour market phenomena which the German public discussion combines under the label of early retirement. The implicit assumption that these two mechanisms are exchangeable pathways into permanent retirement is tested. Using panel data the transition rates from employment into disability retirement and into unemploymentare estimated and compared. Statistical tests reject the hypothesis that disability retirement and unemployment are substitutes.

Suggested Citation

  • Regina Riphahn, 1997. "Disability retirement and unemployment - substitute pathways for labour force exit? An empirical test for the case of Germany," Applied Economics, Taylor & Francis Journals, vol. 29(5), pages 551-561.
  • Handle: RePEc:taf:applec:v:29:y:1997:i:5:p:551-561
    DOI: 10.1080/000368497326769
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    Cited by:

    1. Andrew M. Jones & Eddy Van Doorslaer & Teresa Bago D’Uva & Silvia Balia & Lynn Gambin & Cristina Hernández Quevedo & Xander Koolman & Nigel Rice, 2006. "Health and Wealth: Empirical Findings and Political Consequences," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 7(s1), pages 93-112, May.
    2. Pierre Koning & Daniel van Vuuren, 2006. "Hidden unemployment in disability insurance in the Netherlands; an empirical analysis based on employer data," CPB Discussion Paper 69, CPB Netherlands Bureau for Economic Policy Analysis.
    3. Rob Euwals & Annemiek van Vuren & Daniel van Vuuren, 2011. "The impact of reforms on labour market exit probabilities," CPB Discussion Paper 179, CPB Netherlands Bureau for Economic Policy Analysis.
    4. Lalive, Rafael, 2008. "How do extended benefits affect unemployment duration A regression discontinuity approach," Journal of Econometrics, Elsevier, vol. 142(2), pages 785-806, February.
    5. M. Solaiman Miah & Virginia Wilcox-Gok, 2007. "Do the sick retire early? Chronic illness, asset accumulation and early retirement," Applied Economics, Taylor & Francis Journals, vol. 39(15), pages 1921-1936.
    6. Mona Larsen & Peder J. Pedersen, 2008. "Pathways to early retirement in Denmark, 1984-2000," International Journal of Manpower, Emerald Group Publishing, vol. 29(5), pages 384-409, August.
    7. Knuth, Matthias & Mühge, Gernot & Müller, Angelika, 1999. "The toll of change: Economic restructuring, worker displacement, and unemployment in West Germany," Graue Reihe des Instituts Arbeit und Technik 1999-07, Institut Arbeit und Technik (IAT), Westfälische Hochschule, University of Applied Sciences.
    8. Euwals, Rob & van Vuren, Annemiek & van Vuuren, Daniel, 2011. "The Decline of Early Retirement Pathways in the Netherlands: An Empirical Analysis for the Health Care Sector," IZA Discussion Papers 5810, Institute of Labor Economics (IZA).
    9. Thomas Gries & Stefan Jungblut & Tim Krieger & Henning Meyer, 2019. "Economic Retirement Age and Lifelong Learning: A Theoretical Model With Heterogeneous Labor, Biased Technical Change and International Sourcing," German Economic Review, Verein für Socialpolitik, vol. 20(2), pages 129-170, May.
    10. Regina T. Riphahn, 1999. "Income and employment effects of health shocks A test case for the German welfare state," Journal of Population Economics, Springer;European Society for Population Economics, vol. 12(3), pages 363-389.
    11. Richard V. Burkhauser & Mary C. Daly & Nicolas R. Ziebarth, 2016. "Protecting working-age people with disabilities: experiences of four industrialized nations [Absicherung von Personen mit Erwerbsminderung: Erfahrungen aus vier Industrieländern]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 49(4), pages 367-386, December.
    12. Puhani, Patrick A. & Tabbert, Falko, 2016. "The effects of pension changes on age of first benefit receipt: Regression discontinuity evidence from repatriated ethnic Germans," Labour Economics, Elsevier, vol. 38(C), pages 12-23.
    13. Svenn-Age Dahl & Oivind Anti Nilsen & Kjell Vaage, 2000. "Work or retirement? Exit routes for Norwegian elderly," Applied Economics, Taylor & Francis Journals, vol. 32(14), pages 1865-1876.
    14. Pierre Koning & Daniel van Vuuren, 2010. "Disability insurance and unemployment insurance as substitute pathways," Applied Economics, Taylor & Francis Journals, vol. 42(5), pages 575-588.
    15. David Neumark & Patrick Button, 2014. "Did Age Discrimination Protections Help Older Workers Weather the Great Recession?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 33(3), pages 566-601, June.
    16. Puhani, Patrick A. & Tabbert, Falko, 2015. "Effects of Changes in Pensions on the Age of First Benefit Receipt: Regression Discontinuity Evidence from Repatriated Ethnic Germans," IZA Discussion Papers 8787, Institute of Labor Economics (IZA).
    17. Schneider, Julia & Beblo, Miriam, 2010. "Health at work - indicators and determinants : a revised literature and data review for Germany," IAB Discussion Paper 201017, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    18. Aart‐Jan Riekhoff & Kati Kuitto & Liisa‐Maria Palomäki, 2020. "Substitution and spill‐overs between early exit pathways in times of extending working lives in Europe," International Social Security Review, John Wiley & Sons, vol. 73(2), pages 27-50, April.
    19. Melkersson, Maria, 1999. "Unemployment duration and heterogenous search behavior among Swedish disabled workers," Working Paper Series 1999:5, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    20. Dahl, Svenn-Åge & Nilsen, Øivind Anti & Vaage, Kjell, 2002. "Gender Differences in Early Retirement Behaviour," Working Papers in Economics 02/02, University of Bergen, Department of Economics.
    21. Jones, Andrew M. & Rice, Nigel & Roberts, Jennifer, 2010. "Sick of work or too sick to work? Evidence on self-reported health shocks and early retirement from the BHPS," Economic Modelling, Elsevier, vol. 27(4), pages 866-880, July.
    22. Hugo Benítez Silva & Richard Disney & Sergi Jiménez-Martín, 2009. "Disability, capacity for work and the business cycle: An international perspective," Economics Working Papers 1171, Department of Economics and Business, Universitat Pompeu Fabra.
    23. Melanie Jones & Paul Latreille, 2011. "Disability and self-employment: evidence for the UK," Applied Economics, Taylor & Francis Journals, vol. 43(27), pages 4161-4178.
    24. Hakola, Tuulia, 2000. "Navigating through the Finnish Pension System," Discussion Papers 224, VATT Institute for Economic Research.

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