This paper studies the determinants of disability retirement and unemployment of older workers, two labour market phenomena which the German public discussion combines under the label of early retirement. The implicit assumption that these two mechanisms are exchangeable pathways into permanent retirement is tested. Using panel data the transition rates from employment into disability retirement and ...
In Germany, a large proportion of new retirees-at times, more than half of them-have taken disability retirement. This study investigates the role of expected benefits in determining that choice. The author finds that among German men in 1984-91, age, health, and prior wages were much stronger predictors of the transition into disability retirement than were expected benefits. She concludes that a ...