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Unemployment, human capital depreciation and pension benefits: An empirical evaluation of German data

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  • Potrafke, Niklas

Abstract

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 and 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. Copyright

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  • Potrafke, Niklas, 2012. "Unemployment, human capital depreciation and pension benefits: An empirical evaluation of German data," Munich Reprints in Economics 19271, University of Munich, Department of Economics.
  • Handle: RePEc:lmu:muenar:19271
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    Cited by:

    1. Biewen, Martin & Fitzenberger, Bernd & de Lazzer, Jakob, 2017. "Rising wage inequality in Germany: Increasing heterogeneity and changing selection into full-time work," ZEW Discussion Papers 17-048, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    2. repec:iab:iabfme:201801_en is not listed on IDEAS
    3. repec:bla:kyklos:v:70:y:2017:i:1:p:129-160 is not listed on IDEAS

    More about this item

    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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