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Institutional Reforms and an Incredible Rise in Old Age Employment

Regina Riphahn and Rebecca Schrader

No 7334, CESifo Working Paper Series from CESifo

Abstract: We investigate whether a cut in unemployment benefit payout periods affected older workers’ labor market transitions. We apply rich administrative data and exploit a difference-indifferences approach. We compare the reference group of 40-44 year olds with constant benefit payout periods to older treatment groups with reduced payout durations. For the latter job exit rates declined, job finding rates increased, the propensity to remain employed increased, and the propensity to remain unemployed declined after the reform. These patterns suggest that the reform of unemployment benefits may be one of the reasons behind the recent incredible rise in old age employment in Germany.

Keywords: labor force participation; employment; unemployment insurance; retirement (search for similar items in EconPapers)
JEL-codes: J14 J26 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-age, nep-eur and nep-lab
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Working Paper: Institutional Reforms and an Incredible Rise in Old Age Employment (2018) Downloads
Working Paper: Institutional reforms and an incredible rise in old age employment (2017) Downloads
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