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Bridge Unemployment in Germany: Response in Labour Supply to an Increased Early Retirement Age

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  • Giesecke, Matthias
  • Kind, Michael

Abstract

This study examines an increase in the early retirement age from 60 to 63 for the group of older unemployed men in Germany. As consequence of this policy reform, the time to retirement is increased from the perspective of recently unemployed individuals and therefore serves as a source of exogenous variation. We estimate continuous time hazard models for individuals at risk of leaving the state unemployment into employment or into early retirement due to exceptional rules. We find a positive impact of an increase in the early retirement age on the reemployment probability whereas the probability to retire early due to exceptional rules is not affected.

Suggested Citation

  • Giesecke, Matthias & Kind, Michael, 2013. "Bridge Unemployment in Germany: Response in Labour Supply to an Increased Early Retirement Age," Ruhr Economic Papers 410, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
  • Handle: RePEc:zbw:rwirep:410
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    References listed on IDEAS

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    Cited by:

    1. Engels, Barbara & Geyer, Johannes & Haan, Peter, 2017. "Pension incentives and early retirement," Labour Economics, Elsevier, vol. 47(C), pages 216-231.
    2. Holger Lüthen, 2014. "Rente und Reform: Lehren aus der Vergangenheit," DIW Roundup: Politik im Fokus 14, DIW Berlin, German Institute for Economic Research.
    3. Welteke, Clara & Geyer, Johannes & Haan, Peter, 2016. "Early retirement eligibility and employment behavior: evidence from a cohort based pension reform," VfS Annual Conference 2016 (Augsburg): Demographic Change 145783, Verein für Socialpolitik / German Economic Association.
    4. Alfonso Sánchez-Martin & J. García-Pérez & Sergi Jiménez-Martín, 2014. "Delaying the Normal and Early Retirement Ages in Spain: Behavioural and Welfare Consequences for Employed and Unemployed Workers," De Economist, Springer, vol. 162(4), pages 341-375, December.
    5. Michael Kind, 2015. "A Level Playing Field: An Optimal Weighting Scheme of Dismissal Protection Characteristics," LABOUR, CEIS, vol. 29(1), pages 79-99, March.
    6. Manoli, Dayanand S. & Weber, Andrea, 2016. "The Effects of the Early Retirement Age on Retirement Decisions," CEPR Discussion Papers 11491, C.E.P.R. Discussion Papers.
    7. Sarah Le Duigou & Pierre-Jean Messe, 2017. "Pension reforms, older workers' employment and the role of job separation and finding rates in France," TEPP Working Paper 2017-10, TEPP.
    8. Lorenz, Svenja & Pfister, Mona & Zwick, Thomas, 2018. "Identification of the statutory retirement dates in the Sample of Integrated Labour Market Biographies (SIAB)," FDZ Methodenreport 201808_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    9. Freudenberg, Christoph & Laub, Natalie & Sutor, Tim, 2018. "Pension decrement rates across Europe – Are they too low?," The Journal of the Economics of Ageing, Elsevier, vol. 12(C), pages 35-45.
    10. Johannes Geyer & Clara Welteke, 2017. "Closing Routes to Retirement: How Do People Respond?," Discussion Papers of DIW Berlin 1653, DIW Berlin, German Institute for Economic Research.

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    More about this item

    Keywords

    labour supply; retirement behaviour; old age unemployment; duration analysis;
    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
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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