When Institutions Interact: How the Effects of Unemployment Insurance are Shaped by Retirement Policies

Abstract

"This paper shows that the non-employment effects of unemployment insurance (UI) for older workers depend in a first-order way on the structure of retirement policies. Using German data, we document large bunching in UI inflows at the age that allows workers to claim their pension following UI expiration. These inflows adjust as expected following several UI and pension reforms. We then estimate a dynamic life-cycle model to quantify how the effects of UI vary with retirement policies. Our model suggests that the interaction of UI and retirement policies help explain distinct trends in the unemployment rates of older German workers." (Author's abstract, IAB-Doku) ((en))

Cite article

Gudgeon, M., Guzman, P., Schmieder, J., Trenkle, S. & Ye, H. (2024): When Institutions Interact: How the Effects of Unemployment Insurance are Shaped by Retirement Policies. Ungated Version to NBER working paper 31807. (NBER working paper / National Bureau of Economic Research 31807 (ungated Version 2024)), Cambridge, Mass, 62 p.