Beschäftigung und Arbeitslosigkeit älterer Arbeitnehmer / Employment and Unemployment of the Elderly

Author(s):  
Eva Müller ◽  
Ralf A. Wilke ◽  
Philipp Zahn

SummaryIn 1997, the German government enacted a reform of the unemployment insurance system which lead to a reduction of the maximum entitlement length for unemployment benefits of the older unemployed in the subsequent years. This paper analyses the effects of this reform on the risk of unemployment and on unemployment duration of the older unemployed aged 54-56. This group is of particular interest because it lost a smooth early retirement path via the unemployment benefits scheme. In our empirical analysis we use German administrative individual data drawn form the registers of the federal employment agency and of the public pension funds. After the reform we expect a lower risk of unemployment and shorter unemployment durations for the considered age group. This is confirmed by our empirical analysis. We show that the reform effectively reduced the amount of early retirement at the expense of the unemployment insurance. In particular larger companies and their employees use extended entitlement periods for unemployment benefits for early retirement purposes.

2010 ◽  
Vol 11 (3) ◽  
pp. 336-366 ◽  
Author(s):  
Bernd Fitzenberger ◽  
Ralf A. Wilke

Abstract This paper analyzes empirically the distribution of unemployment durations in West Germany during the 1980s and 1990s. It therefore covers periods before and after the changes during the mid-1980s in the maximum entitlement periods for unemployment benefits for older unemployed. The analysis is based on the IAB employment subsample containing administrative data for about 500,000 individuals. Since these data only partly reveal the unemployment duration in an economic sense, we use a narrow and a wide proxy for unemployment. Our empirical analysis finds significant changes in the distribution of non-employment durations for older unemployed. At the same time, the distribution of unemployment durations between jobs remained unchanged after the reforms. Our findings clearly show that many firms and workers used the more beneficial laws as a part of early retirement packages. Surprisingly, for those workers who found and accepted a new job, we do not observe a prolongation of their search periods to a sizeable extent.


2020 ◽  
Vol 66 (3) ◽  
pp. 207-235
Author(s):  
Jayeon Lindellee

Abstract The public unemployment insurance program in Sweden has retrenched in terms of its benefit generosity in the last three decades. As a response to this trend, in which an ever-smaller proportion of the previous income of unemployed persons is compensated by public unemployment insurance benefit, complementary income insurance schemes provided by unions have expanded rapidly in the last 15 years, currently covering one half of the working population. What does this change mean for people who need income protection upon unemployment and are more likely to find themselves unemployed or underemployed? By analyzing survey-based benefit recipiency data among retail workers who were unemployed in 2014, this article explores the outcomes of the multi-pillarized unemployment benefit provision system in Sweden. While public unemployment insurance benefit does not fully compensate for the income loss for the majority of retail workers, the promise of a complementary income insurance scheme seems to be illusory for many individuals as they repeatedly oscillate between precarious work and benefits, accompanied by the burden of navigating a complex system.


2017 ◽  
Vol 15 (6) ◽  
pp. 1302-1340 ◽  
Author(s):  
Ofer Setty

Abstract Unemployment accounts are mandatory individual savings accounts that can be used only during unemployment or retirement. Unlike unemployment insurance, unemployment accounts solve the moral hazard problem but provide no public insurance to workers. I study a hybrid system that borrows from concepts of both unemployment insurance and unemployment accounts, in which workers are mandated to save when employed and can withdraw from the account when unemployed. Once the account is exhausted, the unemployed worker receives unemployment benefits. This hybrid policy provides insurance to workers more efficiently than an unemployment insurance system because it provides government benefits selectively. As a consequence, young workers can reduce their precautionary savings and better smooth their consumption over the life cycle. Calibrating the model to the US economy, I find that, relative to an optimal unemployment insurance system, the optimal hybrid policy leads to a welfare gain of 2.4%, measured as consumption equivalent variation.


2017 ◽  
Vol 107 (2) ◽  
pp. 527-561 ◽  
Author(s):  
Arash Nekoei ◽  
Andrea Weber

Contrary to standard search models predictions, past studies have not found a positive effect of unemployment insurance (UI) on reemployment wages. We estimate a positive UI wage effect exploiting an age-based regression discontinuity design in Austria. A search model incorporating duration dependence predicts two countervailing forces: UI induces workers to seek higher-wage jobs, but reduces wages by lengthening unemployment. Matching-function heterogeneity plausibly generates a negative relationship between the UI unemployment-duration and wage effects, which holds empirically in our sample and across studies, reconciling disparate wage-effect estimates. Empirically, UI raises wages by improving reemployment firm quality and attenuating wage drops. (JEL J31, J64, J65)


2020 ◽  
Vol 4 (2) ◽  
pp. 65-71
Author(s):  
Irina A. Denisova

The paper discusses the role of unemployment insurance system in economic development in general and in the context of the ongoing crisis due to the forced lockdown related to COVID-19. The key elements of employment subsidy programs with reduced working hours or partial unemployment benefits, based on the experience of OECD countries get special attention.


2017 ◽  
Vol 51 (4) ◽  
pp. 964-998 ◽  
Author(s):  
Vibeke Jakobsen ◽  
Anika Liversage

Using a mixed methods approach, this article examines gendered patterns of employment and of unemployment benefit uptake among Turkish marriage migrants in Denmark. The results show that men use co-ethnic networks to access entry positions. Subsequent eligibility for unemployment benefits enable these men to search for better jobs. Women enter employment more slowly and tell of such entry being related to entering the unemployment insurance system, enabling them to periodically conform to gendered expectations as homemakers. Pakistani marriage migrants display similar patterns, indicating the centrality of this institutional arrangement in low-skilled marriage migrants’ active adaptation to a new society.


2016 ◽  
Vol 8 (1) ◽  
pp. 253-288 ◽  
Author(s):  
Lukas Inderbitzin ◽  
Stefan Staubli ◽  
Josef Zweimüller

We explore how extended unemployment insurance (UI) benefits for older workers affect early retirement and welfare. We argue that extending UI benefits generates program complementarity (more labor market exits and disability benefit take-up in the future) and program substitution (less disability benefit take-up in the present). Exploiting a policy change in Austria, which extended UI benefits to 4 years, we find program complementarity effects for workers aged 50+ and program substitution effects for workers aged 55+. We apply the Baily-Chetty formula for optimal UI to account for complementarity and substitution, showing that UI benefits for older workers were too generous. (JEL J14, J22, J26, J65)


ILR Review ◽  
2003 ◽  
Vol 56 (2) ◽  
pp. 324-348 ◽  
Author(s):  
Štěpán Jurajda ◽  
Frederick J. Tannery

Many empirical studies have confirmed the theoretical prediction that longer-term Unemployment Insurance (UI) entitlement leads to longer unemployment duration. Most of those studies have examined special programs that provide extra weeks of unemployment benefits when unemployment rates in the region are higher. Hence, they must distinguish if the longer unemployment duration among UI claimants observed in these cases is due to the extended benefits or to the adverse labor market conditions that trigger those extensions. In contrast, this paper measures the effect of identical entitlement extensions across two labor markets facing very different demand conditions—Pittsburgh and Philadelphia, over the years 1980–85. The results confirm findings of the existing literature and indicate that the adverse effect of longer entitlement changes relatively little in response to variation in demand conditions.


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