Can Policy Facilitate Partial Retirement? Evidence from Germany

48 Pages Posted: 4 Sep 2015

See all articles by Peter Berg

Peter Berg

Michigan State University - School of Human Resources and Labor Relations

Mary K. Hamman

University of Wisconsin - La Crosse

Matthew Piszczek

University of Wisconsin - Oshkosh - College of Business

Christopher J. Ruhm

University of Virginia - Frank Batten School of Leadership and Public Policy; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

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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

JEL Classification: J26

Suggested Citation

Berg, Peter and Hamman, Mary K. and Piszczek, Matthew and Ruhm, Christopher J., Can Policy Facilitate Partial Retirement? Evidence from Germany. IZA Discussion Paper No. 9266, Available at SSRN: https://ssrn.com/abstract=2655306

Peter Berg (Contact Author)

Michigan State University - School of Human Resources and Labor Relations ( email )

368 Farm Lane, S402
East Lansing, MI 48824
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Mary K. Hamman

University of Wisconsin - La Crosse ( email )

1725 State Street
La Crosse, WI 54601
United States

Matthew Piszczek

University of Wisconsin - Oshkosh - College of Business ( email )

United States

Christopher J. Ruhm

University of Virginia - Frank Batten School of Leadership and Public Policy ( email )

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National Bureau of Economic Research (NBER) ( email )

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IZA Institute of Labor Economics ( email )

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