New Publications

Demography: "Looking Back in Anger? Retirement and Unemployment Scarring" (Hetschko, Knabe, Schöb)

30.04.2019 -

New Publication by Clemens Hetschko, Andreas Knabe und Ronnie Schöb:

Unemployment affects future working conditions and job security negatively, thus reducing life satisfaction after reemployment. These employment-related scars of unemployment should not matter anymore when a person has retired. Using German panel data, we analyze unemployed persons’ transition into retirement to test whether unemployment leaves scars beyond working life and thus for reasons that are not employment-related. We find that involuntary unemployment between the last job and retirement causes a loss in life satisfaction after retirement. People who influenced or even initiated unemployment, by contrast, show no scarring. The scarring effect goes beyond what can be explained by the income loss originating from reduced pensions. It shows up independently of whether the unemployment spell directly before retirement was the only experience of unemployment in a person’s career, or whether she had also experienced unemployment at earlier times. We do not find evidence that early retirement or involuntary retirement are the reasons why formerly unemployed retirees display unemployment scarring.

 

The publication can be found here.

demography

Labour: "When Protection Puts You in Jeopardy -- How Removing Small-Business Clauses Affects Employment Duration" (Lücke)

19.02.2018 -

New publication by Christine Lücke:

In a 2004 reform, Germany exempted small firms from dismissal protection. This paper estimates the effects of dismissal protection on the risk of leaving the establishment, taking advantage of the fact that workers employed before the amendment maintained their previous dismissal protection. Utilizing administrative linked employeremployee data, the results hint at a higher risk during the first 6 months in a job and a lower risk thereafter, if dismissal protection is provided. The estimated survivor curves suggest that even after 5 years the protecting effect of dismissal protection did not compensate the initially adverse effect during the first 6 months of tenure.

 

The publication can be found here.

LABOUR Review of Labour Economics and Industrial Relations

Applied Economics Letters: "There and back again - estimating equivalence scales with measurement error" (Borah, Knabe)

23.01.2018 -

New publication by Melanie Borah and Andreas Knabe:

Using income satisfaction data from the German Socio-Economic Panel, we find large differences in the equivalence weight of a partner when it is being estimated by direct and reverse regressions. We argue that neither of the two models will produce consistent estimates when there is stochastic error in satisfaction and measurement error in incomes. We propose a correction of mismeasured incomes using a constructed alternative income measure. The corrected results are relatively close to those obtained from direct regression. We do not find evidence that previous studies, using the direct regression method, severely suffer from measurement error in incomes.

 

The publication can be found here.

Applied Economic Letters

The Deutschlandrente: A concept for strengthening private funded retirement provision

04.10.2017 -

New publication by Andreas Knabe and Joachim Weimann:

Andreas Knabe and Joachim Weimann, together with the state government of Hesse, have developed a reform proposal for strengthening private funded retirement provision in Germany ("Deutschland-Rente"). In a new article, which has just been published in the ifo Schnelldienst, they discuss this concept in detail.

 

The publication can be found here.

ifo schnelldienst

CESifo Working Papers: "Reference Income Effects in the Determination of Equivalence Scales Using Income Satisfaction Data"

19.10.2016 -

New working paper by Melanie Borah, Andreas Knabe and Carina Kuhställer:

The authors investigate the importance of reference effects in the estimation of equivalence scales from data on income satisfaction.

 The study shows that the separation of needs-based and reference effects helps to overcome a potential bias that causes an overestimation of adults' and an underestimation of children's needs. This result is confirmed by conducting an empirical analysis of data from the German Socio-Economic Panel, where controlling for income comparisons eliminates the gap between equivalence scale parameters for adults and children.

 

The working paper can be found here.

cesifo1

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