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

36 Pages Posted: 11 Apr 2013

See all articles by Matthias Giesecke

Matthias Giesecke

University of Duisburg-Essen

Michael Kind

Ruhr Graduate School in Economics

Date Written: March 1, 2013

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.

Keywords: Labour supply; retirement behaviour; old age unemployment; duration analysis

JEL Classification: J14, J26, J64

Suggested Citation

Giesecke, Matthias and Kind, Michael, Bridge Unemployment in Germany: Response in Labour Supply to an Increased Early Retirement Age (March 1, 2013). Ruhr Economic Paper No. 410, Available at SSRN: https://ssrn.com/abstract=2246768 or http://dx.doi.org/10.2139/ssrn.2246768

Matthias Giesecke

University of Duisburg-Essen ( email )

Lotharstrasse 1
Duisburg, 47048
Germany

Michael Kind (Contact Author)

Ruhr Graduate School in Economics ( email )

Hohenzollernstr. 1-3
Essen, NRW 45128
Germany

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