Recent reforms that aim at reducing the upcoming burdens of population ageing might seriously harm low income individuals. An increase in old-age poverty and disability will be the result. Under this prospect, the present paper quantitatively characterizes the optimal progressivity of unfunded...

In 2007 Germany has introduced a pension reform which increases the normal retirement age from currently age 65 to 67. The present study aims to quantify the macroeconomic, welfare and efficiency consequences of this reform by means of a computable general equilibrium model with overlapping...

We provide an explanation for the common finding that the effect of retirement on life satisfaction is negligible. For this we use subjective well-being measures for life and domains of life satisfaction that are available in the German Socio-Economic Panel (GSOEP) and show that the effect of...

How can public pension systems be reformed to ensure fiscal stability in the face of increasing life expectancy? To address this question, we use micro data to estimate a structural life-cycle model of individuals' employment, retirement and consumption decisions. We calculate that, in the case...

Both economic and epidemiological literature has shown that perceived high strain at work and lack of social infrastructures are good predictors of sick-leave. The latter is particularly relevant in countries where facilities for children and care services are scarce and women are asked to fill...

Child care pension benefits in Germany are designed to compensate for maternal employment interruptions due to child-birth. In comparison to most family benefits, child care pension benefits are accumulated upon child birth but only become effective on the verge of retirement. Hence, whether...