Ruhr Economic Papers

Ruhr Economic Papers #410

Bridge Unemployment in Germany: Response in Labour Supply to an Increased Early Retirement Age

by Matthias Giesecke and Michael Kind

RWI, University of Duisburg-Essen, RGS Econ, 03/2013, 34 S./p., 8 Euro, ISBN 978-3-86788-465-5 DOI: 10.4419/86788465



This study examines an increase in the early retirement age from 60 to 63 for the group
of older unemployed men in Germany. As consequence of this policy reform, the time
to retirement is increased from the perspective of recently unemployed individuals and
therefore serves as a source of exogenous variation. We estimate continuous time hazard
models for individuals at risk of leaving the state unemployment into employment or
into early retirement due to exceptional rules. We find a positive impact of an increase
in the early retirement age on the reemployment probability whereas the probability to
retire early due to exceptional rules is not affected.

JEL-Classification: J14, J26, J64

Keywords: Labour supply; retirement behaviour; old age unemployment; duration analysis