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...

Routine-intensive occupations have been declining in many countries, but how does this affect individual workers’ careers if this decline is particularly severe in their local labor market? This paper uses administrative data from Germany and a matched difference-in-differences approach to...

Early retirement options are usually targeted at employees at risk of not reaching their regular retirement age in employment. An important at‐risk group comprises employees who have worked in demanding jobs for many years. This group may be particularly negatively affected by the abolition of...

Generous income support programs as provided by European welfare states have often been blamed to reduce work incentives for lower income classes and to increase durations of unemployment. Standard studies measure work incentives based on annual income concepts. This paper analyzes how work...

Generous income support programs as provided by European welfare states have often been blamed to hamper employment. This paper investigates the importance of incentives inherent in the tax-benefit system for the individual decision to take up work. Using German microdata over the period...

Using longitudinal data for Argentina, we estimate the labor supply reaction of spouses and children to their husband's or father's job loss. Our findings show that job loss by the household head has a positive and significant impact on the labor supply of other household members. However, it...

Using German panel data, we assess the causal effect of job loss, and thus of an extensive income shock, on risk attitude. In line with predictions of expected utility reasoning about absolute risk aversion, losing oneś job reduces the willingness to take risks. This effect strengthens in...

Using a large-scale panel data set, we trace the evolution of incomes and well-being around the entry into 'solo self-employment' - that is, running a business without employees. We find that solo self-employment is used to self-insure against employment shocks: employment rates fall and poverty...

This study analyzes the causal effect of an increase in the retirement age on health. We exploit a sizable cohort-specific pension reform for women using two complementary empirical approaches - a Regression Discontinuity Design and a Difference-in-Differences approach. The analysis is based on...

This paper presents a model in which firms recruit both unemployed and employed workers by posting vacancies. Firms act monopsonistically and set wages to retain their existing workers as well as to attract new ones. The model differs from Burdett and Mortensen (1998) in that its assumptions...