01485nas a2200169   4500008004100000245007600041210006900117260007000186490003900256520082300295653002301118653002001141653002701161653001501188100001201203856010001215       2020                        eng d00aThe Effect of Pension Subsidies on the Retirement Timing of Older Women0 aEffect of Pension Subsidies on the Retirement Timing of Older Wo  aGermanybUniversity of Bonn and University of MannheimcMay, 20200 vCRC TR 224 Discussion Paper Series3 a<p>I estimate the effect of additional pension benefits on women&rsquo;s retirement decisions by examining a German pension subsidy program. The subsidies have a kinked relationship with the recipients&rsquo; past pension contributions, creating a sharply different slope of benefits for similar women on either side of the kink point. I find that a 100 euro increase in the monthly benefit induces female recipients to claim their pensions six months earlier. Recipients also adjust their labor supply by using unemployment insurance (UI) as a stepping stone to retirement and by reducing time spent in marginal employment. A back-of-the-envelope calculation suggests that the ratio of behavioral to mechanical costs for this subsidy program is 0.25, which is smaller than that of other income support programs.</p>
10apension generosity10apension subsidy10aregression kink design10aretirement1 aYe, Han  uhttp://eeassoc.s3.amazonaws.com/s3fs-public/2021-09/Han_Ye_pension_subsidy_teachingmaterial.pdf