Chapter

Early Retirement and Employment of the Young in Germany

Axel örsch-Supan and Reinhold Schnabel

in Social Security Programs and Retirement around the World

Published by University of Chicago Press

Published in print October 2007 | ISBN: 9780226310176
Published online February 2013 | e-ISBN: 9780226310008 | DOI: http://dx.doi.org/10.7208/chicago/9780226310008.003.0006
Early Retirement and Employment of the Young in Germany

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This chapter examines how pension reforms affected the labor market—in particular, employment and unemployment of the old versus the young. The chapter is organized as follows. Section 5.2 summarizes important pension reform steps in Germany. Section 5.3 describes employment and unemployment over time by age group, and attempts to draw first links between changes in employment patterns and pension reforms. Section 5.4 quantifies the changes of early retirement incentives over time and measures their effect on older workers' employment; Section 5.5 draws conclusions. There is no evidence for the belief that driving workers into early retirement makes room for the young. In fact, the German data reveal that higher employment of older individuals is positively correlated with higher employment of the young.

Keywords: pension reform; employment; labor force participation; labor market; older workers; young workers; unemployment; retirement incentives

Chapter.  7268 words.  Illustrated.

Subjects: Public Economics

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