Michigan State University
To advance our understanding of how establishments respond to changes in pensionable ages implemented through public pension reform and phased over a 13-year period
This grant supports the research of Peter Berg at Michigan State University, who is examining how changes in pensionable ages implemented through public pension reform in Germany affected the managerial strategies businesses adopted in response to longer work lives. The work is the first microeconomic examination of the effects of increases in social security age on establishments’ internal labor markets. Berg and his team will use linked employer-employee data (LIAB) provided by the Research Data Center (FDZ) at the Institute for Employment Research (IAB) in Germany. This LIAB will then be combined with administrative establishment data from the Establishment History Panel (BHP) to construct the projected policy impact variable. These unique data will allow Berg to examine of how changes in pensionable age differentially affect business establishments; how they affect hiring, promotion, and compensation decisions; and whether they are linked to store or factory closure. The team will also catalogue and assess the diversity of establishment responses to increases in the pensionable age.