IDEAS home Printed from https://ideas.repec.org/p/iaw/iawdip/142.html
   My bibliography  Save this paper

Tightening access to early retirement: who can adapt?

Author

Listed:
  • Bernhard Boockmann
  • Martin Kroczek
  • Natalie Laub

Abstract

We study heterogeneity in the effects of two pension reforms in Germany that closed pathways into early retirement: the abolition of an old-age pension scheme for women and the abolition of a pension after unemployment or part-time work. We focus on heterogeneity with respect to several occupational characteristics. Both reforms had significant effects on individual employment states, and in both cases the effects differ significantly by occupation. The positive effect on employment is smaller in occupations with higher job strain and, in case of the old-age pension for women, the effect on unemployment is larger. The effects also differ by occupational tasks, PC use and the introduction of new technologies.

Suggested Citation

  • Bernhard Boockmann & Martin Kroczek & Natalie Laub, 2023. "Tightening access to early retirement: who can adapt?," IAW Discussion Papers 142, Institut für Angewandte Wirtschaftsforschung (IAW).
    • Handle: RePEc:iaw:iawdip:142
    as

    Download full text from publisher

    File URL: https://www.iaw.edu/RePEc/iaw/pdf/iaw_dp_142.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Luc Behaghel & David M. Blau, 2012. "Framing Social Security Reform: Behavioral Responses to Changes in the Full Retirement Age," American Economic Journal: Economic Policy, American Economic Association, vol. 4(4), pages 41-67, November.
    2. Hudomiet, Péter & Willis, Robert J., 2022. "Computerization, obsolescence and the length of working life," Labour Economics, Elsevier, vol. 77(C).
    3. Ludovico Carrino & Karen Glaser & Mauricio Avendano, 2020. "Later retirement, job strain, and health: Evidence from the new State Pension age in the United Kingdom," Health Economics, John Wiley & Sons, Ltd., vol. 29(8), pages 891-912, August.
    4. Victor Chernozhukov & Iván Fernández‐Val & Ye Luo, 2018. "The Sorted Effects Method: Discovering Heterogeneous Effects Beyond Their Averages," Econometrica, Econometric Society, vol. 86(6), pages 1911-1938, November.
    5. Geyer, Johannes & Haan, Peter & Hammerschmid, Anna & Peters, Michael, 2020. "Labor Market and Distributional Effects of an Increase in the Retirement Age," Labour Economics, Elsevier, vol. 65(C).
    6. Staubli, Stefan & Zweimüller, Josef, 2013. "Does raising the early retirement age increase employment of older workers?," Journal of Public Economics, Elsevier, vol. 108(C), pages 17-32.
    7. Johannes Geyer & Clara Welteke, 2021. "Closing Routes to Retirement for Women: How Do They Respond?," Journal of Human Resources, University of Wisconsin Press, vol. 56(1), pages 311-341.
    8. Matthias Giesecke, 2018. "The Effect of Benefit Reductions on the Retirement Age: The Heterogeneous Response of Manual and Non‐Manual Workers," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 64(1), pages 213-238, March.
    9. Axel H. Börsch-Supan & Johannes Rausch & Nicolas Goll, 2020. "Social Security Reforms and the Changing Retirement Behavior in Germany," NBER Working Papers 27518, National Bureau of Economic Research, Inc.
    10. Avner Ahituv & Joseph Zeira, 2011. "Technical Progress and Early Retirement," Economic Journal, Royal Economic Society, vol. 121(551), pages 171-193, March.
    11. Engels, Barbara & Geyer, Johannes & Haan, Peter, 2017. "Pension incentives and early retirement," Labour Economics, Elsevier, vol. 47(C), pages 216-231.
    12. Courtney C. Coile, 2015. "Economic Determinants Of Workers’ Retirement Decisions," Journal of Economic Surveys, Wiley Blackwell, vol. 29(4), pages 830-853, September.
    13. Song, Jae G. & Manchester, Joyce, 2007. "New evidence on earnings and benefit claims following changes in the retirement earnings test in 2000," Journal of Public Economics, Elsevier, vol. 91(3-4), pages 669-700, April.
    14. Alexandra Spitz-Oener, 2006. "Technical Change, Job Tasks, and Rising Educational Demands: Looking outside the Wage Structure," Journal of Labor Economics, University of Chicago Press, vol. 24(2), pages 235-270, April.
    15. Federico Biagi & Danilo Cavapozzi & Raffaele Miniaci, 2013. "Employment transitions and computer use of older workers," Applied Economics, Taylor & Francis Journals, vol. 45(6), pages 687-696, February.
    16. Bartel, Ann P & Sicherman, Nachum, 1993. "Technological Change and Retirement Decisions of Older Workers," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages 162-183, January.
    17. Leora Friedberg, 2003. "The Impact of Technological Change on Older Workers: Evidence from Data on Computer Use," ILR Review, Cornell University, ILR School, vol. 56(3), pages 511-529, April.
    18. repec:hal:pseose:hal-00772844 is not listed on IDEAS
    19. Mastrobuoni, Giovanni, 2009. "Labor supply effects of the recent social security benefit cuts: Empirical estimates using cohort discontinuities," Journal of Public Economics, Elsevier, vol. 93(11-12), pages 1224-1233, December.
    20. Ardito Chiara, 2021. "The unequal impact of raising the retirement age: Employment response and program substitution," IZA Journal of Labor Economics, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(1), pages 1-37, January.
    21. Courtney Coile & Jonathan Gruber, 2007. "Future Social Security Entitlements and the Retirement Decision," The Review of Economics and Statistics, MIT Press, vol. 89(2), pages 234-246, May.
    22. David M. Blau & Ryan M. Goodstein, 2010. "Can Social Security Explain Trends in Labor Force Participation of Older Men in the United States?," Journal of Human Resources, University of Wisconsin Press, vol. 45(2).
    23. Duggan, Mark & Singleton, Perry & Song, Jae, 2007. "Aching to retire? The rise in the full retirement age and its impact on the social security disability rolls," Journal of Public Economics, Elsevier, vol. 91(7-8), pages 1327-1350, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Laub, Natalie & Boockmann, Bernhard & Kroczek, Martin, 2023. "Tightening Access to Early Retirement: Who Can Adapt?," VfS Annual Conference 2023 (Regensburg): Growth and the "sociale Frage" 277625, Verein für Socialpolitik / German Economic Association.
    2. Todd Morris, 2022. "The unequal burden of retirement reform: Evidence from Australia," Economic Inquiry, Western Economic Association International, vol. 60(2), pages 592-619, April.
    3. Boockmann, Bernhard & Kroczek, Martin & Laub, Natalie, 2023. "Tightening Access to Early Retirement: Who Can Adapt?," IZA Discussion Papers 16292, Institute of Labor Economics (IZA).
    4. Riphahn, Regina T. & Schrader, Rebecca, 2023. "Reforms of an early retirement pathway in Germany and their labor market effects," Journal of Pension Economics and Finance, Cambridge University Press, vol. 22(3), pages 304-330, July.
    5. Ye, Han, 2018. "The Effect of Pension Subsidies on Retirement Timing of Older Women: Evidence from a Regression Kink Design," IZA Discussion Papers 11831, Institute of Labor Economics (IZA).
    6. Etgeton, Stefan & Fischer, Björn & Ye, Han, 2023. "The effect of increasing retirement age on households’ savings and consumption expenditure," Journal of Public Economics, Elsevier, vol. 221(C).
    7. Zwick, Thomas & Bruns, Mona & Geyer, Johannes & Lorenz, Svenja, 2022. "Early retirement of employees in demanding jobs: Evidence from a German pension reform," The Journal of the Economics of Ageing, Elsevier, vol. 22(C).
    8. Esteban García-Miralles & Jonathan M. Leganza, 2024. "Public Pensions and Private Savings," American Economic Journal: Economic Policy, American Economic Association, vol. 16(2), pages 366-405, May.
    9. Blundell, R. & French, E. & Tetlow, G., 2016. "Retirement Incentives and Labor Supply," Handbook of the Economics of Population Aging, in: Piggott, John & Woodland, Alan (ed.), Handbook of the Economics of Population Aging, edition 1, volume 1, chapter 0, pages 457-566, Elsevier.
    10. Fürstenau, Elisabeth & Gohl, Niklas & Haan, Peter & Weinhardt, Felix, 2023. "Working life and human capital investment: Causal evidence from a pension reform," Labour Economics, Elsevier, vol. 84(C).
    11. Ardito Chiara, 2021. "The unequal impact of raising the retirement age: Employment response and program substitution," IZA Journal of Labor Economics, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(1), pages 1-37, January.
    12. Itay Saporta-Eksten & Ity Shurtz & Sarit Weisburd, 2021. "Social Security, Labor Supply, and Health of Older Workers: Quasi-Experimental Evidence from a Large Reform [Identification and Estimation of Local Average Treatment Effects]," Journal of the European Economic Association, European Economic Association, vol. 19(4), pages 2168-2208.
    13. Staubli, Stefan & Lalive, Rafael & Magesan, Arvind, 2020. "The Impact of Social Security on Pension Claiming and Retirement: Active vs. Passive Decisions," CEPR Discussion Papers 15120, C.E.P.R. Discussion Papers.
    14. Hernaes, Erik & Markussen, Simen & Piggott, John & Røed, Knut, 2015. "Pension Reform and Labor Supply: Flexibility vs. Prescription," IZA Discussion Papers 8812, Institute of Labor Economics (IZA).
    15. García-Miralles, Esteban & Leganza, Jonathan M., 2024. "Joint retirement of couples: Evidence from discontinuities in Denmark," Journal of Public Economics, Elsevier, vol. 230(C).
    16. Regina T. Riphahn & Rebecca Schrader, 2020. "Labor market effects of early retirement reforms," Working Papers 199, Bavarian Graduate Program in Economics (BGPE).
    17. 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.
    18. Philip Sauré & Arthur Seibold & Elizaveta Smorodenkova & Hosny Zoabi, 2023. "Occupations Shape Retirement across Countries," CESifo Working Paper Series 10365, CESifo.
    19. Casas, Pablo & Román, Concepción, 2023. "Early retired or automatized? Evidence from the survey of health, ageing and retirement in Europe," The Journal of the Economics of Ageing, Elsevier, vol. 24(C).
    20. Leinonen, Taina & Laaksonen, Mikko & Chandola, Tarani & Martikainen, Pekka, 2016. "Health as a predictor of early retirement before and after introduction of a flexible statutory pension age in Finland," Social Science & Medicine, Elsevier, vol. 158(C), pages 149-157.

    More about this item

    Keywords

    Pension reforms; effect heterogeneity; occupational demands; occupational tasks;
    All these keywords.

    JEL classification:

    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iaw:iawdip:142. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Rolf Kleimann (email available below). General contact details of provider: https://edirc.repec.org/data/iawtude.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.