In the policy debate, there are regular demands to further increase the retirement age to address the financial challenges for the pension system. However, a prolonged working life impacts a person’s health. Detailed data from the statutory health insurance companies shows that abolishing the...

This paper provides novel evidence on the labor supply response to negative income shocks in retirement, exploiting an institutional feature that caused differential and unexpected income losses among otherwise identical individuals in a sharp regression discontinuity design. We conclude that...