The Effect of Pension Wealth on Employment

Sebastian Becker, Hermann Buslei, Johannes Geyer and Peter Haan
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Sebastian Becker: DIW Berlin and FU Berlin
Hermann Buslei: DIW Berlin
Peter Haan: DIW Berlin and FU Berlin

No 363, Rationality and Competition Discussion Paper Series from CRC TRR 190 Rationality and Competition

Abstract: This study provides novel evidence about the pension wealth elasticity of employment. For the identification we exploit reform-induced variation of pension wealth that is related to the number of children but which does not affect the implicit tax rate of employment. We use a difference-in-differences estimator based on administrative data from the German pension insurance and find that, on average, the negative employment effect of pension wealth is significant and economically important. Heterogeneity analyses document a strong age pattern showing that the employment effects are driven by behavioral responses of women close to retirement. The age pattern is partly explained by the positive effect of pension wealth on disability pensions after the age of 60.

Keywords: pension reform; pension wealth elasticity; female labour supply; retirement; difference in differences (search for similar items in EconPapers)
JEL-codes: H55 J13 J21 J26 (search for similar items in EconPapers)
Date: 2022-12-28
New Economics Papers: this item is included in nep-age
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: The effect of pension wealth on employment (2023)
Working Paper: The effect of pension wealth on employment (2023)
Working Paper: The Effect of Pension Wealth on Employment (2022)
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