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Early Retirement in West Germany: A Sequential Model of Discrete Choice

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Siddiqui, S. Early Retirement in West Germany: A Sequential Model of Discrete Choice. Journal of Contextual Economics – Schmollers Jahrbuch, 117(3), 391-415. https://doi.org/10.3790/schm.117.3.391
Siddiqui, Sikandar "Early Retirement in West Germany: A Sequential Model of Discrete Choice" Journal of Contextual Economics – Schmollers Jahrbuch 117.3, 1997, 391-415. https://doi.org/10.3790/schm.117.3.391
Siddiqui, Sikandar (1997): Early Retirement in West Germany: A Sequential Model of Discrete Choice, in: Journal of Contextual Economics – Schmollers Jahrbuch, vol. 117, iss. 3, 391-415, [online] https://doi.org/10.3790/schm.117.3.391

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Early Retirement in West Germany: A Sequential Model of Discrete Choice

Siddiqui, Sikandar

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 117 (1997), Iss. 3 : pp. 391–415

1 Citations (CrossRef)

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Siddiqui, Sikandar

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Abstract

In this paper, I describe a structural model of retirement behaviour, which accounts for the multiplicity of alternative retirement ages, the possibility of unobserved heterogeneity and the „absorbing state" property of the retirement decision. The results of its implementation for a panel dataset of West Geman males reveal that a person's health status plays a key role in determining the timing of retirement, and that the relative intensity of the individual preference for leisure among public sector employees is, ceteris paribus, below average. A policy-related simulation experiment demonstrates the relevance of pension benefits for the freqency distribution of retirement ages.