Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/333395 
Authors: 
Year of Publication: 
2025
Series/Report no.: 
Würzburg Economic Papers No. 113
Publisher: 
University of Würzburg, Department of Economics, Würzburg
Abstract: 
This paper studies firm adjustments in response to a working life extension of older female employees. Specifically, I exploit the German 1999 pension reform that eliminated an early retirement pathway for women, causing an increase in their early retirement age by three years for those born after January 1, 1952. Using high-quality linked employer-employee data and a difference-in-differences event study design, I show that firms that employed affected women substantially increased their number of retained female employees aged 60-62. However, this retention resulted in a significant reduction in the number of new hires and in a modest decline in the number of wage increases among incumbent employees. Further analyses suggest that the magnitude and type of firm adjustment largely depend on the firm-specific human capital required for the respective occupation.
Subjects: 
firm adjustments
pension reform
internal labor markets
substitution effects
JEL: 
D22
H55
J26
M51
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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