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DIW Discussion Papers 1717 / 2018
We analyze the top tail of the wealth distribution in Germany, France, and Spain based on the first and second wave of the Household Finance and Consumption Survey (HFCS). Since top wealth is likely to be underrepresented in household surveys, we integrate big fortunes from rich lists, estimate a Pareto distribution, and impute the missing rich. In addition to the Forbes list, we rely on national rich ...
2018| Stefan Bach, Andreas Thiemann, Aline Zucco
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DIW Discussion Papers 1716 / 2017
In this paper, we study how the tax-and-transfer system reduces the inequality of lifetime income by redistributing lifetime earnings between individuals with different skill endowments and by providing individuals with insurance against lifetime earnings risk. Based on a dynamic life-cycle model, we find that redistribution through the tax-and-transfer system offsets around half of the inequality ...
2017| Peter Haan, Daniel Kemptner, Victoria Prowse
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DIW Discussion Papers 1706 / 2017
Haushalte mit unteren und mittleren Einkommen profitieren kaum von Senkungen des Einkommensteuertarifs oder vom Abbau des Solidaritätszuschlags. Zugleich führen schon moderate Entlastungen im Eingangsbereich des Steuertarifs oder beim „Mittelstandsbauch“ zu beträchtlichen Steuerausfällen und entlasten auch hohe Einkommen, soweit die Spitzensteuersätze nicht angehoben werden. Wenn die Steuerpolitik ...
2017| Stefan Bach, Michelle Harnisch
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DIW Discussion Papers 1698 / 2017
This study uses German social security records to provide novel evidence about the heterogeneity in life expectancy by lifetime earnings and, additionally, documents the distributional implications of this earnings-related heterogeneity. We find a strong association between lifetime earnings and life expectancy at age 65 and show that the longevity gap is increasing across cohorts. For West German ...
2017| Peter Haan, Daniel Kemptner, Holger Lüthen
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DIW Discussion Papers 1692 / 2017
Motivations to participate in the labour market as well as to invest in labour market skills are crucial for the successful integration of refugees. In this paper we use a unique dataset – the IAB-BAMF-SOEP Refugee Survey, which is a representative longitudinal study of all refugees reported on administrative records in Germany – and analyse which determinants and characteristics are correlated with ...
2017| Peter Haan, Martin Kroh, Kent Troutman
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DIW Discussion Papers 1679 / 2017
This paper develops a structural dynamic retirement model to investigate effects and corresponding underlying mechanisms of a partial retirement program on labor supply, fiscal balances, and the pension income distribution. The structural approach allows for disentangling the two counteracting mechanisms that drive the employment effects of partial retirement: 1) the crowding-out from full-time employment, ...
2017| Songül Tolan
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DIW Discussion Papers 1653 / 2017
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 ...
2017| Johannes Geyer, Clara Welteke
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DIW Discussion Papers 1652 / 2017
Labor supply in the market for low-paid jobs in Germany is strongly influenced by tax exemptions - even for individuals to whom these exemptions do not apply. We present compelling evidence that an individual's choice set depends on other workers' preferences because firms cater their job offers to aggregate preferences in the market. We estimate an equilibrium job search model which rationalizes the ...
2017| Luke Haywood, Michael Neumann
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DIW Discussion Papers 1639 / 2017
In aging societies, information on how to reform pension systems is essential to policy makers. This study scrutinizes effects of early retirement disincentives on retirement behavior, individual welfare, pensions and public budget. We employ administrative pension data and a detailed model of the German tax and social security system to estimate a structural dynamic retirement model. We find that ...
2017| Timm Bönke, Daniel Kemptner, Holger Lüthen
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DIW Discussion Papers 1628 / 2016
We analyze the implication of time-inconsistent preferences in educational decision making and corresponding policies using a structural dynamic choice model. Based on a novel identification approach, we exploit variation in average years invested in degree attainment through various educational reforms to identify the discount factor of hyperbolic time preferences. We make two important research contributions. ...
2016| Daniel Kemptner, Songül Tolan