Home | Events Archive | Forward-Looking Labor Supply Responses to Changes in Pension Wealth: Evidence from Germany
Seminar

Forward-Looking Labor Supply Responses to Changes in Pension Wealth: Evidence from Germany

  • Series
    Research on Monday
  • Speaker(s)
    Giulia Giupponi (Bocconi University, Italy)
  • Field
    Empirical Microeconomics
  • Location
    Erasmus University Rotterdam, Campus Woudestein, Polak 3-18
    Rotterdam
  • Date and time

    October 23, 2023
    11:30 - 12:30

Abstract: We provide new evidence of forward-looking labor supply responses to changes in pension wealth. We exploit a 2014 German reform that increased pension wealth for mothers by an average of 4.4% per child born before January 1, 1992. Using administrative data on the universe of working histories, we implement a difference-in-differences design comparing women who had their first child before versus after January 1, 1992. We document significant reductions in labor earnings, driven by intensive margin responses. Our estimates imply that, on average, an extra euro of pension wealth in a given period reduces unconditional labor earnings by 54 cents. Joint paper with Elisabeth Artmann and Nicola Fuchs-Schuendeln.

Link to paper.