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  • 1
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2018-07-17
    Description: We present quasi-experimental evidence on the employment effects of an unprecedented large increase in the early retirement age (ERA). Raising the ERA has the potential to extend contribution periods and to reduce the number of pension beneficiaries at the same time, if employment exits are successfully delayed. However, workers may not be able to work longer or may choose other social support programs as exit routes from employment. We study the effects of the ERA increase on employment and potential program substitution in a regression-discontinuity framework. Germany abolished an important early retirement program for women born after 1951, effectively raising the ERA for women by three years. We analyze the effects of this huge increase on employment, unemployment, disability pensions, and inactivity rates. Our results suggest that the reform increased both employment and unemployment rates of women age 60 and over. However, we do not find evidence for active program substitution from employment into alternative social support programs. Instead employed women remained employed and unemployed women remained unemployed. The results suggest an increase in inequality within the affected cohorts.
    Keywords: J14 ; J18 ; J22 ; J26 ; ddc:330 ; retirement age ; early retirement ; regression discontinuity ; pension reform ; unemployment ; labor supply ; disability pension
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
    Type: doc-type:workingPaper
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  • 2
    Publication Date: 2018-07-18
    Description: We evaluate the labor market and distributional effects of an increase in the early retirement age (ERA) from 60 to 63 for women. We use a regression discontinuity design which exploits the immediate increase in the ERA between women born in 1951 and 1952. The analysis is based on the German micro census which includes about 370,000 households per year. We focus on heterogeneous labor market effects on the individual and on the household level and we study the distributional implications using net household income. In this respect we extend the previous literature which mainly studied employment effects on the individual level. Our results show sizable labor market effects which strongly differ by subgroups. We document larger employment effects for women who cannot rely on other income on the household level, e.g. women with a low income partner. The distributional analysis shows on average no significant effects on female or household income. This result holds as well for heterogeneous groups: Even for the most vulnerable groups, such as single women, women without higher education, or low partner income, we do not find significant reductions in income. One reason for this result is program substitution.
    Keywords: J14 ; J18 ; J22 ; J26 ; H31 ; ddc:330 ; retirement age ; pension reform ; labor supply ; early retirement ; distributional effects ; spillover effects ; household
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
    Type: doc-type:workingPaper
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  • 3
    Publication Date: 2018-11-27
    Description: We evaluate the labor market and distributional effects of an increase in the early retirement age (ERA) from 60 to 63 for women. We use a regression discontinuity design which exploits the immediate increase in the ERA between women born in 1951 and 1952. The analysis is based on the German micro census which includes about 370,000 households per year. We focus on heterogeneous labor market effects on the individual and on the household level and we study the distributional implications using net household income. In this respect we extend the previous literature which mainly studied employment effects on the individual level. Our results show sizable labor market effects which strongly differ by subgroups. We document larger employment effects for women who cannot rely on other income on the household level, e.g. women with a low income partner. The distributional analysis shows on average no significant effects on female or household income. This result holds as well for heterogeneous groups: Even for the most vulnerable groups, such as single women, women without higher education, or low partner income, we do not find significant reductions in income. One reason for this result is program substitution.
    Keywords: J14 ; J18 ; J22 ; J26 ; H31 ; ddc:330 ; retirement age ; pension reform ; labor supply ; early retirement ; distributional effects ; spillover effects ; household
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 4
    Publication Date: 2016-02-08
    Description: Mit der bundesweiten Einführung des Elterngeldes für Geburten ab dem 1.1.2007 wurde das Erziehungsgeld abgelöst. An die Stelle eines Transfers, der nach Prüfung der Bedürftigkeit gezahlt wurde, trat eine Einkommensersatzleistung. Zudem wurde die Bezugsdauer von maximal zwei Jahren auf in der Regel 12 oder 14 Monate gekürzt. Mit zwei Partnermonaten wurden zusätzlich Anreize für Eltern geschaffen, die Elternzeit untereinander aufzuteilen. Nachdem frühere Reformen des Erziehungsgeldes oder der Elternzeit in der Regel dazu führten, dass Mütter zunehmend länger dem Arbeitsmarkt fern blieben, sind mit dieser Reform erstmalig für bestimmte Gruppen Anreize geschaffen, früher in das Erwerbsleben zurückzukehren. Vier Jahre nach Einführung des Elterngelds hat das DIW Berlin die Auswirkungen des Elterngeldes auf die Erwerbstätigkeit von Müttern untersucht. Die Ergebnisse zeigen, dass die Erwerbstätigkeit von Müttern mit Kindern im ersten Lebensjahr zwar zurückgegangen ist. Mütter mit Kindern im zweiten Lebensjahr haben jedoch aufgrund der Einführung des Elterngeldes eine höhere Wahrscheinlichkeit, in den Beruf zurückzukehren. Die positiven Effekte der Erwerbsbeteiligung finden wir insbesondere für Mütter mit niedrigen Einkommen und für Mütter in Ostdeutschland.
    Keywords: J22 ; H31 ; ddc:330 ; labor supply ; parental leave ; policy evaluation
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: German
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  • 5
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    Berlin: Deutsches Institut für Wirtschaftsforschung (DIW)
    Publication Date: 2016-02-08
    Description: Die Tochter und der Sohn, die neben der Arbeit ihre Eltern pflegen oder sich um ihre nicht mehr mobile Nachbarin kümmern: Informelle Pflegetätigkeiten sind eine zentrale Stütze des deutschen Pflegesystems - insbesondere angesichts der alternden Bevölkerung und des damit einhergehenden steigenden Pflegebedarfs. Zwischen fünf und sechs Prozent aller Erwachsenen leisten regelmäßig informelle Pflege, wie das DIW Berlin auf Grundlage von Daten des Sozio-oekonomischen Panels (SOEP) für die Jahre 2001 bis 2012 berechnet hat. Rund 60 Prozent dieser Frauen und Männer sind im erwerbsfähigen Alter. Der Anteil der Erwerbstätigen an allen informell Pflegenden unter 65 Jahren ist von knapp 53 auf fast 66 Prozent gestiegen. Bei den Vollzeitbeschäftigten war der Anstieg stärker als bei den Teilzeitbeschäftigten, wenngleich Vollzeitbeschäftigte im Durchschnitt wesentlich seltener Pflege und Beruf kombinieren. Es stellt sich die Frage, wie Erwerbs- und Pflegetätigkeit besser miteinander vereinbart werden können. Denn der Bedarf an (informeller) Pflege wird infolge des demografischen Wandels weiter steigen. Der vorliegende Bericht zeigt, dass informell Pflegende allgemein und mit der sozialen Sicherung weniger zufrieden sind als Personen, die keine Pflege leisten. Allerdings geben die Daten an dieser Stelle keinen Hinweis darauf, dass eine gleichzeitige Erwerbstätigkeit diesen Effekt verstärkt.
    Description: The daughter and son who take care of their parents or look after their neighbor who is no longer mobile while working at the same time: informal care is a central pillar of the German care system - particularly with regard to the aging population and the resultant increase in the demand for care. Between five and six percent of all adults regularly provide informal care according to DIW Berlin's calculations for the years 2001 to 2012 on the basis of data from the Socio-Economic Panel Study (SOEP). Around 60 percent of these women and men are of working age. The proportion of people in employment among all informal carers below 65 years of age has risen from just under 53 to almost 66 percent. The increase was greater among full-time than part-time employees although those in full-time work combine caregiving and career significantly less frequently on average. The question arises how work and caregiving could be better reconciled because the need for (informal) care will continue to increase due to demographic change. The present report shows that informal carers are less satisfied in general and also with social security than those who do not provide informal care. However, the data give no indication that working at the same time amplifies this effect.
    Keywords: J22 ; H31 ; J11 ; ddc:330 ; long-term care ; labor supply ; life-satisfaction
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: German
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  • 6
    Publication Date: 2016-02-08
    Description: Parental leave and subsidized child care are prominent examples of family policies supporting the reconciliation of family life and labor market careers for mothers. In this paper, we combine different empirical strategies to evaluate the employment effects of these policies for mothers in Germany. In particular we estimate a structural labor supply model and exploit a natural experiment, i.e. the reform of parental leave benefits. By exploiting and combining the advantages of the different methods, i.e the internal validity of the natural experiment and the external validity of the structural model, we can go beyond evaluation studies restricted to one particular methodology. Our findings suggest that a combination of parental leave benefits and subsidized child care leads to sizable employment effects of mothers.
    Keywords: H31 ; J22 ; C52 ; ddc:330 ; labor supply ; parental leave benefits ; childcare costs ; structural model ; natural experiment
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 7
    Publication Date: 2016-06-22
    Description: The employment behavior of mothers is strongly influenced by labor market regulations and certain institutional arrangements, which both vary greatly across European countries. Using the European Community Household Panel (ECHP) 1994-2001 for Denmark, Germany, Italy and the United Kingdom, which represent four distinct ?institutional regimes?, we estimate the short-run and long-term effects of childbirth on married women?s employment and working hours. Estimation results show that these effects vary across the four countries in accordance with prevailing institutional regulations.
    Keywords: D12 ; J13 ; J22 ; ddc:330 ; employment and working hours ; labor supply ; childbirth ; European Community Household Panel ; panel data models ; Frauenerwerbstätigkeit ; Mütter ; Arbeitsangebot ; Familienpolitik ; Mutterschutz ; Vergleich ; Dänemark ; Deutschland ; Italien ; Großbritannien
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 8
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    Berlin: Deutsches Institut für Wirtschaftsforschung (DIW)
    Publication Date: 2016-06-22
    Description: The gender wage gap is a persistent labor market phenomenon. Most research focuses on the determinants of these wage differences. We contribute to this literature by exploring a different research question: if wages of women are systematically lower than male wages, what are the distributional consequences (disposable income) and what are the labor market effects (labor supply) of the wage gap? We demonstrate how the gender gap in gross hourly wages shows up in the distribution of disposable income of households. This requires taking into account the distribution of working hours as well as the tax-benefit system and other sources of household income. We present a methodological framework for deriving the gender wage gap in terms of disposable income which combines quantile decomposition, simulation techniques and structural labor supply estimation. This allows us to examine the implications of the gender wage gap for income inequality and working incentives. We illustrate our approach with an application to German data.
    Keywords: D31 ; J31 ; J16 ; H23 ; ddc:330 ; gender wage gap ; quantile regression ; wage decomposition ; labor supply ; microsimulation ; income distribution ; tax-benefit system
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 9
    Publication Date: 2016-06-22
    Description: Parental leave and subsidized child care are prominent examples of family policies supporting the reconciliation of family life and labor market careers for mothers. In this paper, we combine different empirical strategies to evaluate the employment effects of these policies for mothers in Germany. In particular we estimate a structural labor supply model and exploit a natural experiment, i.e. the reform of parental leave benefits. By exploiting and combining the advantages of the different methods, i.e the internal validity of the natural experiment and the external validity of the structural model, we can go beyond evaluation studies restricted to one particular methodology. Our findings suggest that a combination of parental leave benefits and subsidized child care leads to sizable employment effects of mothers.
    Keywords: J22 ; H31 ; C52 ; ddc:330 ; labor supply ; parental leave benefits ; childcare costs ; structural model ; natural experiment
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
    Type: doc-type:workingPaper
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  • 10
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    Berlin: Deutsches Institut für Wirtschaftsforschung (DIW)
    Publication Date: 2017-04-07
    Description: We present quasi-experimental evidence on the employment effects of an unprecedented large increase in the early retirement age (ERA). Raising the ERA has the potential to extend contribution periods and to reduce the number of pension beneficiaries at the same time, if employment exits are successfully delayed. However, workers may not be able to work longer or may choose other social support programs as exit routes from employment. We study the effects of the ERA increase on employment and potential program substitution in a regression-discontinuity framework. Germany abolished an important early retirement program for women born after 1951, effectively raising the ERA for women by three years. We analyze the effects of this huge increase on employment, unemployment, disability pensions, and inactivity rates. Our results suggest that the reform increased both employment and unemployment rates of women age 60 and over. However, we do not find evidence for active program substitution from employment into alternative social support programs. Instead employed women remained employed and unemployed women remained unemployed. The results suggest an increase in inequality within the affected cohorts.
    Keywords: J14 ; J18 ; J22 ; J26 ; ddc:330 ; retirement age ; early retirement ; regression discontinuity ; pension reform ; unemployment ; labor supply ; disability pension
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
    Type: doc-type:workingPaper
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