Menu Expand

The Social Costs of Health-related Early Retirement in Germany: Evidence from the German Socio-Economic Panel

Cite JOURNAL ARTICLE

Style

Hostenkamp, G., Stolpe, M. The Social Costs of Health-related Early Retirement in Germany: Evidence from the German Socio-Economic Panel. Journal of Contextual Economics – Schmollers Jahrbuch, 132(2), 323-357. https://doi.org/10.3790/schm.132.2.323
Hostenkamp, Gisela and Stolpe, Michael "The Social Costs of Health-related Early Retirement in Germany: Evidence from the German Socio-Economic Panel" Journal of Contextual Economics – Schmollers Jahrbuch 132.2, 2012, 323-357. https://doi.org/10.3790/schm.132.2.323
Hostenkamp, Gisela/Stolpe, Michael (2012): The Social Costs of Health-related Early Retirement in Germany: Evidence from the German Socio-Economic Panel, in: Journal of Contextual Economics – Schmollers Jahrbuch, vol. 132, iss. 2, 323-357, [online] https://doi.org/10.3790/schm.132.2.323

Format

The Social Costs of Health-related Early Retirement in Germany: Evidence from the German Socio-Economic Panel

Hostenkamp, Gisela | Stolpe, Michael

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 132 (2012), Iss. 2 : pp. 323–357

Additional Information

Article Details

Author Details

Gisela Hostenkamp, University of Southern Denmark, J. B. Winsløws Vej 9, DK-5000 Odense C, Denmark.

Michael Stolpe, Kiel Institute for the World Economy, Hindenburgufer 66, 24105 Kiel.

Abstract

Using data from the German Socio-economic Panel, we study how stratification in health and income contributes to the social cost of health-related early retirement, the balance of lost labour income and health benefits. On average, early retirees improve their health by almost two thirds of the loss suffered during the last four working years. We calibrate counterfactual scenarios and find keeping all workers in very good health, the highest of five categories of self-assessed health, would delay the average retirement age by more than three years and reduce the social costs by more than 20 percent.