Vortrag
Family Pension Benefits and Maternal Employment: Evidence from Germany

Andreas Thiemann

Netspar International Pension Workshop 2014
Venedig, Italien, 19.06.2014 - 20.06.2014



Abstract:
Child-raising pension benefits in Germany are designed as a compensation for maternal employment interruptions due to child-birth. In comparison to most other family benefits, child-raising pension benefits are accumulated upon child birth but become effective only on the verge of retirement. Hence, the extent to which child-raising pension benefits are determinants of the maternal employment decision depends essentially on a mother's individual discount factor and her planning horizon. This paper tests the hypothesis that child-raising pension benefits influence the maternal employment decision. Exploiting the pension reform 1992 as a natural experiment, a regression-discontinuity method is used. All empirical results indicate that mothers do not consider child-raising pension benefits in their employment decision.