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Unemployment, Human Capital Depreciation and Pension Benefits: An Empirical Evaluation of German Data

  • Niklas Potrafke


    (Department of Economics, University of Konstanz, Germany)

This paper investigates empirically how unemployment-induced employment-breaks at different career stages influence pension benefits. The analysis is based on German data. I distinguish four different career phases and investigate to what extent the prevailing social security policy compensated for earning losses. The results suggest that (1) losses in pension benefits were the greatest if unemployment occurred in the middle of a career (between 31 50); (2) social security policies have had a mitigating effect on losses in pension benefits. These findings indicate that institutions have a decided influence on how career patterns translate into pension benefits.

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Paper provided by Department of Economics, University of Konstanz in its series Working Paper Series of the Department of Economics, University of Konstanz with number 2011-05.

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Length: 29 pages
Date of creation: 25 Apr 2011
Date of revision:
Handle: RePEc:knz:dpteco:1105
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  1. Dennis Görlich & Andries de Grip, 2009. "Human capital depreciation during hometime," Oxford Economic Papers, Oxford University Press, vol. 61(suppl_1), pages i98-i121, April.
  2. Börsch-Supan, Axel & Reil-Held, Anette & Schunk, Daniel, 2008. "Saving incentives, old-age provision and displacement effects: evidence from the recent German pension reform," Journal of Pension Economics and Finance, Cambridge University Press, vol. 7(03), pages 295-319, November.
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