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Institutional Reforms and an Incredible Rise in Old Age Employment

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  • Regina T. Riphahn
  • Rebecca Schrader

Abstract

We investigate whether a cut in unemployment benefit payout periods affected older workers’ labor market transitions. We apply rich administrative data and exploit a difference-indifferences approach. We compare the reference group of 40-44 year olds with constant benefit payout periods to older treatment groups with reduced payout durations. For the latter job exit rates declined, job finding rates increased, the propensity to remain employed increased, and the propensity to remain unemployed declined after the reform. These patterns suggest that the reform of unemployment benefits may be one of the reasons behind the recent incredible rise in old age employment in Germany.

Suggested Citation

  • Regina T. Riphahn & Rebecca Schrader, 2018. "Institutional Reforms and an Incredible Rise in Old Age Employment," CESifo Working Paper Series 7334, CESifo.
  • Handle: RePEc:ces:ceswps:_7334
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    More about this item

    Keywords

    labor force participation; employment; unemployment insurance; retirement;
    All these keywords.

    JEL classification:

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

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