We examine whether income and unemployment risks are compensated by individual wages. Using a portfolio approach we show that the marginal income risk effect on wages is always positive whereas the marginal unemployment risk effect crucially depends on the income risk. The interaction effect...

Using the introduction of fixed long-term unemployment benefits in Germany in 2005 as a unique experiment we find strong evidence that lower unemployment benefit has an adverse effect on wages. We use panel data to identify and estimate the effect of this structural break. In western Germany the...

Using the introduction of fixed unemployment assistance in Germany in 2005 as a unique natural experiment, we find strong evidence that decreased unemployment compensation has an adverse effect on wages. We use micro panel data to identify and estimate the effect of this structural break. In...

In 2005, the unemployment compensation for long-term unemployed was reduced in Germany. We examine how this reform affected the transition probability to employment. Additionally, we inspect how this effect varies over unemployment duration. We estimate proportional hazard models using German...

We study the effects of income risk and unemployment risk on individual wages simultaneously. Starting point for the empirical analysis is a portfolio model for the labor market. This model shows positive wage effects for both risks but also a negative interaction effect. Using German...

In the public debate on old-age poverty in Germany there are three often-heard preconceptions about the statutory pension system: first, raising the legal retirement age to 67 automatically leads to lower pensions. Second, the average level of statutory pension is lower in Eastern Germany....

Individuen und Haushalte verlagern ihren Lebensmittelpunkt neben sozialen Komponenten vor allem aufgrund ökonomischer Überlegungen. Ostdeutschland sieht sich seit Jahren einer kontinuierlichen, oft wirtschaftlich induzierten, Abwanderung gen Westen gegenüber. Am Beispiel Sachsens wird...

Nachdem die Bundeskanzlerin Mitte dieses Jahres eine Angleichung der Rentenwerte in Ost- und Westdeutschland angeregt hat, greifen zurzeit vor allem Politiker aus Ostdeutschland diesen Vorschlag im Rahmen einer Altersarmutsdebatte auf. Zur Angleichung der Ost-Renten werden im politischen Raum...

The statutory pension system is still the most important income source among seniorcitizens in Germany. Due to increasing disruptions in employment biographies since the1970s and due to the mass unemployment in Eastern Germany since the 1990s, there isa growing fear of post-retirement poverty in...