We propose and test a general equilibrium model in which longer working time and higher labor force participation lead to a fall in unemployment. Longer working hours and higher labor force participation have two direct e®ects: People have higher in- comes and less (leisure) time. This has...

This paper investigates consumer expenditures of German households pre- and post-retirement. The widely observed distinct drop in spending upon retirement entry poses an empirical puzzle since life cycle theory predicts smoothing of the marginal utility of consumption over time. As one...

Many initiatives worldwide aim at improving financial literacy through targeted education programs, yet there is little evidence regarding their effectiveness. We examine the impact of a short financial education program on teenagers in German high schools. Our findings reveal that the training...

This paper studies the relationship between demographic change and international capital flows using a large cross-country time-series dataset. The analysis provides empirical evidence of a substantial and twofold demographic effect on international capital flows: First, capital flows are...

In a panel covering a large number of countries from 1970 to 2003, we show that net portfolio flows play an important role in correcting external imbalances, since they are driven by common determinants represented by countries’ demographic profiles, the quality of institutions, monetary...

I use longitudinal data from the Health and Retirement Study to estimate the effect of job loss on health for near elderly employees. Job loss is a major cause of economic insecurity for working age individuals, and can cause reduction in income, and loss of health insurance. To control for...

Der demographische Wandel ist einer der großen „Megatrends“, der die politische, soziale und ökonomische Situation in Deutschland in den kommenden Jahrzehnten entscheidend verändern wird. Dabei werden die einzelnen Bundesländer mit teils recht unterschiedlichen Konsequenzen...

With the adoption of the latest German pension reform in spring 2004 a public debate arose on whether rates of return for future pensioner cohorts were hreatened to become negative as a result of the new reform. In order to make the system sustainable, the reform had restricted future rises in...