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DIW Weekly Report 44/45 / 2021

Need for Long-Term Care Depends on Social Standing

The poor have a significantly shorter life expectancy than the wealthy. Using data from the Socio-Economic Panel, this Weekly Report shows that poorer people become in need of care earlier in life and more often. In addition, blue-collar workers have a higher risk of requiring care than civil servants, as do people with high job strain compared to those with low job strain. The risk of dependence on ...

2021| Johannes Geyer, Peter Haan, Hannes Kröger, Maximilian Schaller
DIW Weekly Report 40 / 2021

20 Years of the Riester Pension—Personal Retirement Provision Requires Reform

Introduced 20 years ago as a part of the 2001 pension reform, the Riester pension is meant to function as an essential component of the German pension system with the aim of compensating for decreasing public pensions. However, data collected by the SOEP show that this objective has not yet been achieved. For ten years, use of the Riester pension plan has been stagnating at around 25 percent of the ...

2021| Johannes Geyer, Markus M. Grabka, Peter Haan
Externe referierte Aufsätze

Nonparametric Regression with Selectively Missing Covariates

We consider the problem of regression with selectively observed covariates in a nonparametric framework. Our approach relies on instrumental variables that explain variation in the latent covariates but have no direct effect on selection. The regression function of interest is shown to be a weighted version of observed conditional expectation where the weighting function is a fraction of selection ...

In: Journal of Econometrics 223 (2021), 1, S. 28-52 | Christoph Breunig, Peter Haan
DIW Weekly Report 27/28 / 2021

Real Estate Taxation Reform: Tax Land Values, Abolish Privileges

Real estate is taxed at comparatively low rates in Germany, with primarily the affluent benefiting from numerous existing tax privileges. This Weekly Report describes the current state of real estate taxation in Germany and outlines reform proposals that could increase tax revenue, improve the efficiency of the tax system, and reduce wealth and income inequality. In the case of property tax, value-based ...

2021| Stefan Bach, Sebastian Eichfelder
Cluster-Seminar Öffentliche Finanzen und Lebenslagen

Long-Term Effects of Equal Sharing: Evidence from Inheritance Rules for Land

What are the long-term economic effects of a more equal distribution of wealth? We exploit variation in historical inheritance rules for land traversing political, linguistic, geological, and religious borders in Germany. In some German areas, inherited land was to be shared or divided equally among children, while in others land was ruled to be indivisible. Using a geographic regression...

02.12.2020| Charlotte Bartels
Research Project

Effects of the legal minimum wage on poverty

The project analyses the effects of the statutory minimum wage on poverty in Germany. We use the Socio-Economic Panel (SOEP) to examine the development of income poverty. Using a microsimulation model, the project studies the effect of minimum wages on social benefits.

Current Project| Public Economics, German Socio-Economic Panel study
Monographien

Income, Consumption and Wealth Inequality in Germany: Three Concepts, Three Stories?

Given how controversially inequality is still being discussed by both academics and policy makers in Germany, we discuss methodological issues related to the measurement of inequalities and review the literature and empirical estimates of different forms of inequality. One important issue is the choice of the measure of well-being: the central measures discussed are household equivalent disposable ...

Berlin: Forum for a New Economy, 2020, 25 S.
(Forum New Economy Basic Papers ; 2)
| Charlotte Bartels, Carsten Schroeder
Externe referierte Aufsätze

Labor Market and Distributional Effects of an Increase in the Retirement Age

We evaluate the labor market and distributional effects of an increase in the early retirement age (ERA) from 60 to 63 for women born after 1951. We use a regression discontinuity design which exploits the strong increase in the ERA between women born in 1951 and 1952. The analysis is based on the German microcensus which includes about 370,000 households per year. We focus on heterogeneous labor market ...

In: Labour Economics 65 (2020), 101817, 21 S. | Johannes Geyer, Peter Haan, Anna Hammerschmid, Michael Peters
DIW Weekly Report 10 / 2020

The Gender Pay Gap Begins to Increase Sharply at Age of 30

The gender pay gap increases with age: While the average gross hourly wage gap between male and female 30-year-olds is nine percent, the gap triples to 28 percent by the age of 50. This stark increase is due to differences in employment behavior in the decades between the ages of 30 and 50. Beginning at age 30, women often switch to part-time work to be able to provide childcare, whereas men tend to ...

2020| Annekatrin Schrenker, Aline Zucco
Externe referierte Aufsätze

Job Displacement, Family Dynamics and Spousal Labor Supply

We study the effectiveness of intrahousehold insurance among married couples when the husband loses his job due to a mass layoff or plant closure. Empirical results based on Austrian administrative data show that husbands suffer persistent employment and earnings losses, while wives' labor supply increases moderately due to extensive margin responses. Wives' earnings gains recover only a tiny fraction ...

In: American Economic Journal: Applied Economics 12 (2020), 4, S. 253-287 | Martin Halla, Julia Schmieder, Andrea Weber
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