A new GLO Discussion Paper using data on a generous partial retirement reform in Germany supports the notion of an intrinsic willingness of older individuals to acquire skills and abilities independent of financial incentives.
The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.
GLO Discussion Paper No. 580, 2020
GLO Fellows Jens Ruhose & Stephan L. Thomsen
Author Abstract: Adult education can mitigate the productivity decline in aging societies if older workers are willing to learn. We examine a generous partial retirement reform in Germany that led to a massive increase in early retirement. Using county-level administrative data on voluntary education activities, we employ a difference-in-differences approach for identification. The estimates show a strong increase in participation in adult education, specifically in cognitively demanding courses, for early retirees who would have continued working in the absence of the reform. This supports the notion of an intrinsic willingness of older individuals to acquire skills and abilities independent of financial incentives.
GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS, EconPapers). Complete list of all GLO DPs – downloadable for free.