Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/214228
Authors: 
Lorenz, Svenja
Pfister, Mona
Zwick, Thomas
Year of Publication: 
2020
Series/Report no.: 
ZEW Discussion Papers 20-007
Abstract: 
This paper shows that increasing the normal retirement age and introducing pension deductions for retirement before normal retirement age in Germany did not prolong employment of older men. The reason for this surprising result is that employers encouraged their employees to use the bridge options unemployment or partial retirement instead of the early retirement option for the long-term insured. Bridge options allowed employers to terminate employment considerably earlier than the pension for long-term insured. Employers however had to compensate their employees for the substantially higher costs of the bridge options. Therefore mainly employers with high employment adaption costs induced employees to use a bridge option during the implementation phase of the pension reform.
Subjects: 
cohort-specific pension reform
early retirement
partial retirement
unemployment
labor supply
labor demand
JEL: 
J14
J18
J22
J26
Document Type: 
Working Paper

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