Maintaining One's Living Standard at Old Age: What Does that Mean? Evidence Using Panel Data from Germany
How much retirement income is needed in order to maintain one’s living standard at old age? As it is difficult to find a firm basis for an empirical treatment of this question, we employ a novel approach to assessing an adequate replacement rate vis-à-vis income in the pre-retirement period. We subject indications regarding satisfaction with current income as collected in the German Socio-Economic Panel (GSOEP) to longitudinal analyses, using linear fixed-effects models and fixed-effects ordered logit models as our main analytical tools. We obtain a required net replacement rate of about 87% for the year of entry into retirement as a rather robust result, while replacement rates keeping the living standard unchanged may slightly decline over the retirement period.
|Date of creation:||2013|
|Contact details of provider:|| Postal: Poschingerstrasse 5, 81679 Munich|
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Web page: http://www.cesifo-group.de
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Charlier, Erwin, 2002. "Equivalence Scales in an Intertemporal Setting with an Application to the Former West Germany," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(1), pages 99-126, March.
- Merz, Joachim & Faik, Jürgen, 1994. "Equivalence Scales Based on Revealed Preference Consumption Expenditure Microdata - The Case of West Germany," MPRA Paper 16297, University Library of Munich, Germany.
- Das, J.W.M. & van Soest, A.H.O., 1996.
"A panel data model for subjective information on household income growth,"
Other publications TiSEM
a6683363-b5a6-4fe7-b062-7, Tilburg University, School of Economics and Management.
- Das, Marcel & van Soest, Arthur, 1999. "A panel data model for subjective information on household income growth," Journal of Economic Behavior & Organization, Elsevier, vol. 40(4), pages 409-426, December.
- Das, J.W.M. & van Soest, A.H.O., 1996. "A Panel Data Model for Subjective Information on Household Income Growth," Discussion Paper 1996-75, Tilburg University, Center for Economic Research.
- Bellemare, C. & Melenberg, B. & van Soest, A.H.O., 2002.
"Semi-parametric Models for Satisfaction with Income,"
2002-87, Tilburg University, Center for Economic Research.
- Charles Bellemare & Bertrand Melenberg & Arthur van Soest, 2002. "Semi-parametric models for satisfaction with income," CeMMAP working papers CWP12/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Melenberg, B. & van Soest, A.H.O., 1995. "Semiparametric estimation of equivalence scales using subjective information," Discussion Paper 1995-71, Tilburg University, Center for Economic Research.
- Geishecker, Ingo & Riedl, Maximilian, 2012. "Ordered response models and non-random personality traits: Monte Carlo simulations and a practical guide," Center for European, Governance and Economic Development Research Discussion Papers 116, University of Goettingen, Department of Economics.
- Bruno S. Frey, 2008. "Happiness: A Revolution in Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262062771, September.
- Robert Fenge & Silke Uebelmesser & Martin Werding, 2006. "On the Optimal Timing of Implicit Social Security Taxes Over the Life Cycle," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 62(1), pages 68-107, March.
- Binswanger, J. & Schunk, D., 2008.
"What is an Adequate Standard of Living During Retirement?,"
2008-82, Tilburg University, Center for Economic Research.
- Binswanger, Johannes & Schunk, Daniel, 2012. "What is an adequate standard of living during Retirement?," Journal of Pension Economics and Finance, Cambridge University Press, vol. 11(02), pages 203-222, April.
- Schunk, Daniel & Binswanger, Johannes, 2008. "What is an Adequate Standard of Living during Retirement?," Sonderforschungsbereich 504 Publications 08-48, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
- Binswanger, Johannes & Schunk, Daniel, 2008. "What is an adequate standard of living during retirement?," Papers 08-48, Sonderforschungsbreich 504.
- Johannes Binswanger & Daniel Schunk, 2009. "What is an Adequate Standard of Living during Retirement?," CESifo Working Paper Series 2893, CESifo Group Munich.
- Johannes Binswanger & Daniel Schunk, 2008. "What is an adequate standard of living during retirement?," MEA discussion paper series 08171, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
- Deaton, Angus S & Muellbauer, John, 1986. "On Measuring Child Costs: With Applications to Poor Countries," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 720-744, August.
- Baetschmann, Gregori & Staub, Kevin E. & Winkelmann, Rainer, 2011.
"Consistent Estimation of the Fixed Effects Ordered Logit Model,"
IZA Discussion Papers
5443, Institute for the Study of Labor (IZA).
- Gregori Baetschmann & Kevin E. Staub & Rainer Winkelmann, 2015. "Consistent estimation of the fixed effects ordered logit model," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 178(3), pages 685-703, 06.
- Koulovatianos, Christos & Schroder, Carsten & Schmidt, Ulrich, 2005.
"On the income dependence of equivalence scales,"
Journal of Public Economics,
Elsevier, vol. 89(5-6), pages 967-996, June.
- Kohn Karsten & Missong Martin, 2003. "Estimation of Quadratic Expenditure Systems Using German Household Budget Data / Schätzung Quadratischer Ausgabensysteme anhand der Daten der Einkommens- und Verbrauchsstichprobe," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 223(4), pages 422-448, August.
- Kapteyn, Arie, 1994.
"The Measurement of Household Cost Functions: Revealed Preference versus Subjective Measures,"
Journal of Population Economics,
Springer;European Society for Population Economics, vol. 7(4), pages 333-350, November.
- Kapteyn, A.J., 1994. "The measurement of household cost functions : Revealed preference versus subjective measures," Discussion Paper 1994-3, Tilburg University, Center for Economic Research.
- Lancaster, Tony, 2000. "The incidental parameter problem since 1948," Journal of Econometrics, Elsevier, vol. 95(2), pages 391-413, April.
When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_4223. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Klaus Wohlrabe)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.