Working Paper: NBER ID: w21478
Authors: Peter Berg; Mary K. Hamman; Matthew Piszczek; Christopher J. Ruhm
Abstract: In 1996, Germany introduced the Altersteilzeit (ATZ) law, which encouraged longer working lives through partial retirement incentives. Using matched pension system and establishment survey data, we estimate changes in part-time employment and retirement after ATZ. We find the policy induced growth in part-time work for men and extended men's expected duration of employment by 1.8 years. As the policy evolved to include an abrupt retirement option, the worklife gain for men fell to 1.2 years. Among women, part-time employment grew less and employment duration changed little initially but later declined by 0.2 years when abrupt retirement became available.
Keywords: Partial Retirement; Germany; Labor Market; Policy Analysis
JEL Codes: J26
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| ATZ policy (R48) | part-time employment for men aged 55-61 (J29) |
| ATZ policy (R48) | expected duration of employment for men aged 55-61 (J26) |
| ATZ policy (R48) | part-time employment for women (J22) |
| ATZ policy (R48) | expected duration of employment for women (J21) |
| ATZ policy (evolved to allow abrupt retirement) (J26) | expected duration of employment for men (C41) |