Microeconometric Analysis of the Retirement Decision Germany

This paper analyses the determinants of the retirement decision in Germany using microdata from the German Socio-Economic Panel over the period 1985-1995. Non-parametric and semi-parametric techniques have been used to describe the exit to retirement. Non-parametric estimates suggest that the incent...

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Bibliographic Details
Main Author: Antolín, Pablo
Other Authors: Scarpetta, Stefano
Format: eBook
Language:English
Published: Paris OECD Publishing 1998
Series:OECD Economics Department Working Papers
Subjects:
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Collection: OECD Books and Papers - Collection details see MPG.ReNa
Description
Summary:This paper analyses the determinants of the retirement decision in Germany using microdata from the German Socio-Economic Panel over the period 1985-1995. Non-parametric and semi-parametric techniques have been used to describe the exit to retirement. Non-parametric estimates suggest that the incentive structure generated by the different social security schemes play a powerful role in the individual retirement decision. The semi-parametric analysis is conducted using a piece-wise constant hazard model with multiple destinations (i.e. disability scheme and old-age pension scheme) and time-varying covariates. Socio-demographic factors have a strong impact on the retirement decision. Moreover, poor health contributes to early withdrawals from the labour market, especially in the case of disability retirement. Financial incentives offered in the pension system are also powerful in shaping the age profile of retirement. In particular, we used the pension wealth and an estimate of the ..
Physical Description:37 p. 21 x 29.7cm