Nuremberg Research Seminar in Economics on 20 November 2019 – ROOM 4.154 !!
You are invited to join the weekly Nuremberg Research Seminar in Economics on 20 November 2019, from 13.15 to 14.45 pm. The seminar will be held in room Number LG 4.154. Thomas Zwick (University of Würzburg) will be talking about “Employers appreciate influence on terminating employment of older workers”.
Please find below the abstract:
This paper shows that the introduction of pension deductions for retirement between early and normal retirement age in Germany did not lead to a prolongation of employment of older men after early retirement age. We argue that the reason for this surprising result is that employers induced their employees to use the bridge options unemployment or partial retirement instead of the early retirement option for long-term insured. The main differences between these options is that in the bridge options employment exit is possible already before early retirement age and that employees are not autonomous in deciding when to retire. Old men using the pension for long-term insured increased employment after early retirement according to the Option Value Model. Old men in the bridge options however decreased employment with increasing pension deductions. Mainly employers with high employment adaption costs induced employees to use a bridge option because substantial compensation costs were necessary to do so.