Template-Type: ReDIF-Paper 1.0
Title: When Institutions Interact: How the Effects of Unemployment Insurance are Shaped by Retirement Policies
Author-Name: Matthew Gudgeon
Author-Email: matthew.gudgeon@tufts.edu
Author-Name: Pablo Guzman-Pinto
Author-Email: guzmanpi@amazon.com
Author-Name: Johannes Schmieder
Author-Email: johannes@bu.edu
Author-Name: Simon Trenkle
Author-Email: Trenkle@iza.org
Author-Name: Han Ye
Author-Email: han.ye@uni-mannheim.de
Classification-JEL: J26, J64, J65
Keywords: Unemployment insurance, moral hazard, retirement, older workers, interactions

Abstract: This paper shows empirically 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 first present reduced-form evidence of these interactions, documenting large bunching in UI inflows at the age 
that allows workers to claim their pension following UI expiration. We then estimate a dynamic life-cycle model and use it to directly quantify how the
effects of UI vary with retirement policies. Accounting for interactions across UI and retirement 
institutions also helps explain otherwise difficult-to-explain trends in the unemployment rate of older German workers.

Note: 
Length: 112
Creation-Date: 2023-12
Revision-Date:
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp481
File-Format: application/pdf
Handle: RePEc:bon:boncrc:CRCTR224_2023_481