NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Publications by Morten Schuth

Contact and additional information for this authorAll NBER papers and publicationsNBER Working Papers only

Working Papers and Chapters

April 2014Health, Financial Incentives, and Early Retirement: Micro-Simulation Evidence for Germany
with Hendrik Jürges, Lars Thiel, Tabea Bucher-Koenen, Johannes Rausch, Axel Börsch-Supan
in Social Security Programs and Retirement Around the World: Disability Insurance Programs and Retirement, David A. Wise, editor
February 2014Health, Financial Incentives, and Early Retirement: Micro-Simulation Evidence for Germany
with Hendrik Juerges, Lars Thiel, Tabea Bucher-Koenen, Johannes Rausch, Axel Boersch-Supan: w19889
About 20% of German workers retire on disability pensions. Disability pensions provide fairly generous benefits for those who are not already age-eligible for an old-age pension and who are deemed unable to work for health reasons. In this paper, we use two sets of individual survey data to study the role of health and financial incentives in early retirement decisions in Germany, in particular disability benefit uptake. We show that financial incentives to retire do affect sick individuals at least as much as healthy individuals. Based on 25 years of individual survey data and empirical models of retirement behavior, we then simulate changes in the generosity of disability pensions to understand how these changes would affect retirement behavior. Our results show that making the disabilit...

Forthcoming: Health, Financial Incentives, and Early Retirement: Micro-Simulation Evidence for Germany, Hendrik Jürges, Lars Thiel, Tabea Bucher-Koenen, Johannes Rausch, Morten Schuth, Axel Börsch-Supan. in Social Security Programs and Retirement Around the World: Disability Insurance Programs and Retirement, Wise. 2014

June 2013Early Retirement, Mental Health and Social Networks
with Axel Börsch-Supan
in Discoveries in the Economics of Aging, David A. Wise, editor
This paper explores the inter-relationships between early retirement, mental health--especially cognition--and the size and composition of social networks among older people. While early retirement enables more leisure and relieves stressful job conditions, it also accelerates cognitive decline. We argue in this paper that part of this accelerated cognitive ageing occurs because social networks shrink especially after early retirement. Social contacts are a side effect of employment that keeps workers mentally agile. Social contacts, especially with friends, however, decline gradually after retirement, with an acceleration effect when retirement was early. The paper therefore puts some shade on the popular notion that early retirement is bliss.

Contact and additional information for this authorAll NBER papers and publicationsNBER Working Papers only

 
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