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The Timing of Employment Breaks: How Does It Affect Pension Benefits? ; Empirical Evidence from Germany

  • Niklas Potrafke

This paper provides empirical evidence how the timing of employment breaks affects pension benefits in Germany. Analysing the biographical data set from the German Pension Insurance (SUF VVL 2004) the employment histories of individuals aged 21 to 60 can be mirrored in detail. We relate differences in pension benefits to employment breaks due to unemployment and parental leave in the individual life cycle, distinguishing by gender. Three different career phases (early, middle and late) are distinguished and respective social policy phases are considered. As predicted by human capital theory, the losses due to career interruptions in the early and middle employment period differ. However, the negative effects due to unemployment in the late employment period are only weak. This finding detects special characteristics of the covered age-groups in the data set.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.60178.de/dp710.pdf
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Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 710.

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Length: 26 p.
Date of creation: 2007
Date of revision:
Handle: RePEc:diw:diwwpp:dp710
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  1. Mincer, Jacob & Polachek, Solomon, 1974. "Family Investment in Human Capital: Earnings of Women," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages S76-S108, Part II, .
  2. Jacob Mincer & Solomon Polacheck, 1974. "Family Investments in Human Capital: Earnings of Women," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 397-431 National Bureau of Economic Research, Inc.
  3. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, 07.
  4. repec:iza:izadps:dp509 is not listed on IDEAS
  5. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
  6. Light, Audrey & Ureta, Manuelita, 1995. "Early-Career Work Experience and Gender Wage Differentials," Journal of Labor Economics, University of Chicago Press, vol. 13(1), pages 121-54, January.
  7. Jacob Mincer & Haim Ofek, 1982. "Interrupted Work Careers: Depreciation and Restoration of Human Capital," Journal of Human Resources, University of Wisconsin Press, vol. 17(1), pages 3-24.
  8. Beblo, Miriam & Wolf, Elke, 2002. "Wage Penalties for Career Interruptions: An Empirical Analysis for West Germany," ZEW Discussion Papers 02-45, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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