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Can Policy Facilitate Partial Retirement? Evidence from Germany

Author

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  • Berg, Peter B.

    () (Michigan State University)

  • Hamman, Mary K.

    () (University of Wisconsin, La Crosse)

  • Piszczek, Matthew

    () (University of Wisconsin, Oshkosh)

  • Ruhm, Christopher J.

    () (University of Virginia)

Abstract

In 1996, Germany introduced the Altersteilzeit (ATZ) law, which encouraged longer working lives through partial retirement incentives. Using matched pension system and establishment survey data, we estimate changes in part-time employment and retirement after ATZ. We find the policy induced growth in part-time work for men and extended men's expected duration of employment by 1.8 years. As the policy evolved to include an abrupt retirement option, the worklife gain for men fell to 1.2 years. Among women, part-time employment grew less and employment duration changed little initially but later declined by 0.2 years when abrupt retirement became available.

Suggested Citation

  • Berg, Peter B. & Hamman, Mary K. & Piszczek, Matthew & Ruhm, Christopher J., 2015. "Can Policy Facilitate Partial Retirement? Evidence from Germany," IZA Discussion Papers 9266, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp9266
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    References listed on IDEAS

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    3. Denis LATULIPPE & John TURNER, 2000. "Partial retirement and pension policy in industrialized countries," International Labour Review, International Labour Organization, vol. 139(2), pages 179-195, June.
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    5. Gustman, Alan L & Steinmeier, Thomas L, 1985. "The 1983 Social Security Reforms and Labor Supply Adjustments of Older Individuals in the Long Run," Journal of Labor Economics, University of Chicago Press, vol. 3(2), pages 237-253, April.
    6. Wanger, Susanne, 2010. "Die Altersteilzeit im Zusammenspiel individueller und betrieblicher Einflussfaktoren," WSI-Mitteilungen, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 63(8), pages 395-403.
    7. Maxime Comeau & Denis Latulippe, 2015. "Effective Age of Retirement: Innovative Methodology and Recent Experience," Cahiers de recherche 1504, Chaire de recherche Industrielle Alliance sur les enjeux économiques des changements démographiques.
    8. Fuchs, Johann & Söhnlein, Doris & Weber, Brigitte, 2008. "Demographic effects on the German labour supply : a decomposition analysis," IAB Discussion Paper 200831, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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    Cited by:

    1. Andrea Albanese & Bart Cockx & Yannick Thuy, 2020. "Working time reductions at the end of the career: Do they prolong the time spent in employment?," Empirical Economics, Springer, vol. 59(1), pages 99-141, July.
    2. Endler, Johannes & Geyer, Johannes, 2017. "The Interaction of Pension System and Unemployment Insurance - Evidence from two Reforms," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168279, Verein für Socialpolitik / German Economic Association.
    3. Songül Tolan, 2015. "Die Flexibilisierung des Rentenübergangs in Deutschland," DIW Roundup: Politik im Fokus 82, DIW Berlin, German Institute for Economic Research.

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    More about this item

    Keywords

    partial retirement; Germany;

    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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