Old Age Poverty – Causes and a Projection for 2023
Ingmar Kumpmann, Michael Gühne, Herbert S. Buscher
Abstract
Several factors bring about a rise in old age poverty in Germany, especially in East Germany. Using data from the German Socio-economic Panel (SOEP) we examine causes and extent of old age poverty in Germany. We begin our inquiry with a cross section regression in order to determine the impact of several factors on retirement incomes in Germany. In the second step we perform an income projection of today’s 50 to 55 year-old people for the year 2023. In doing so, we take into account different sources of income, including several forms of capital income and the calculated rent of owner-occupied houses and flats. We find a significant rise in old age poverty especially in East Germany as a consequence of rising unemployment after the German unification.
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Options and Limits of the Matching Approach – An Application to Workers Participation
Birgit Schultz
IWH Discussion Papers,
No. 15,
2006
Abstract
The evaluation of economic effects of workers participation is not simple from the methodical point of view because of specific characteristics of establishments with works councils. Especially recent studies show contradictory results. In this study problems are pointed out, discussed, and options for solution are presented on the example of workers participation in East German establishments of industry and construction by the IABEstablishment Panel. An optimal matching-algorithm which supplies good matching-results for small samples to assign ‘statistical establishment-twins’ is applied. But by reason of very short primarily spells it can only calculate short time effects. Therefore, the matching method is additionally used to construct longer observation periods. By this new application establishments with recently founded works councils are matched with so called ‘proxy establishments’ with existing works councils. As a result short observation periods are prolonged and information about long-term effects can be given. The effects on productivity, profitability and qualification level of employees show neither in short-term nor in long-term a significant impact on workers’ participation.
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