This project analyses various reform and labour market scenarios with regard to their impact on old-age poverty in the period up to 2045. These are changes to the lower limit for the level of protection in the GRV (holding lines), the pension adjustment rule, a higher retirement age, a generous exemption scheme for pension income from the GRV for basic security, and increased gainful employment at...
We study the incentive and labor market effects of disability benefit programs using unique policy variation in Germany. In 2014, disability benefits of new recipients were increased considerably while eligibility criteria were not changed. We exploit this quasi-experimental policy variation to test the implications at two different margins. First, we analyze to what extent an increase in the...
This project serves to further develop the open source software GETTSIM. GETTSIM is a simulation model written in the programming language Python, which can depict the German tax and transfer system. The software offers a multitude of applications in research and teaching. It is developed in cooperation with the IZA (Institute of Labor Economics) as well as other German research institutes and...
This study provides novel evidence about the pension wealth elasticity of employment. For the identification we exploit reform-induced variation of pension wealth that is related to the number of children but which does not affect the implicit tax rate of employment. We use a difference-in-differences estimator based on administrative data from the German pension insurance and find that, on average, ...
This dissertation consists of five independent chapters contributing to the field of applied economics. The first three chapters analyze workers' perceptions of the wage penalty associated with working part-time, further evaluating the labor supply implications of biased beliefs. Chapter 4 quantifies the effects of raising the normal retirement age on the career trajectories of middle-aged workers ...
The German Federal Government has expanded subsidies for employees with low gross wages (midijob employees) as of January 1, 2023, and raised the upper earnings limit to 2,000 euros. As a result, around 6.2 million midijob employees will benefit from paying reduced social security contributions while still receiving their full pension entitlements, made possible by a redistribution within the social ...
In this paper, we use unique health record data that cover outpatient care and the associated costs to quantify the health care costs of a sizable increase in the retirement age in Germany. For the identification, we exploit a sizable cohort-specific pension reform which abolished an early retirement program for all women born after 1951. Our results show that health care costs significantly increase ...