In 1997, the German government enacted a reform of the unemployment insurance system which lead to a reduction of the maximum entitlement length for unemployment benefits. The paper analyses the effects of this reform on the risk of unemployment and on unemployment duration of the older unemployed aged 54-56. This group lost a smooth early retirement path via the unemployment benefits scheme. We show that the reform effectively reduced the amount of early retirement at the expense of the unemployment insurance. In particular larger companies and their employees use extended entitlement periods for unemployment benefits for early retirement purposes.

Authors

Müller, Eva
Wilke, Ralf
Zahn, Philipp

Keywords

Arbeitslosenversicherung, Frühverrentung, Administrative Daten