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decades. Voluntary savings for retirement will therefore gain more and more relevance in order to maintain one’s standard of … living during retirement. This article examines the savings behavior for retirement on an individual level in Germany. As a … well as the disposable household income. Furthermore migrants and individuals living in the Eastern part of Germany turn …
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The life-cycle consumption and permanent income hypotheses predict that if workers face greater likelihood of unemployment in the future that lowers expected future income, they will save more today. In this paper, we test this hypothesis by looking at the expenditure response of workers to the...
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Households face earnings risk which is non-normal and varies by age and over the income distribution. We show that allowing for these rich features of earnings dynamics, in the context of a structurally estimated life-cycle portfolio choice model, helps to rationalize the limited participation...
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