| dc.description.abstract | In this thesis, we examine the gender pension gap in Germany, analyze influencing factors and their quantitative significance, and explore regional differences between East and West Germany. We base our analysis on high-quality register data provided by the “Deutsche Rentenversicherung Bund” (eng. German Statutory Pension Insurance Scheme), which encompasses comprehensive information on all individuals who retired under the German pension system in 2019. We employ Multiple Linear Regression and Oaxaca-Blinder (OB) decomposition models to analyze gender differences in pension income from the first pillar of the German pension system. We identify how gender differences in labor market characteristics and behavior can lead to gender differences in labor income. Additionally, we discuss how gender differences in child-rearing periods and marital status result in differences in labor market outcomes and, consequently, in pension income. The OB decomposition incorporates these factors and shows that gender differences in work experience significantly drive pension income differences. The OB decomposition further distinguishes the gender gap into explained and unexplained parts, revealing that gender differences in pension income persist even when men and women share the same characteristics. The study confirms significant East-West variations and affirms the relevance of our established economic hypotheses: Gender differences in education, work experience, and employment increase the gender pension gap. Although we propose that differences in childcare responsibilities would increase the gender pension gap, our findings indicate an opposite effect; this anomaly is due to the dataset detailing pension benefits for child-rearing periods rather than capturing labor market intermittency due to childcare responsibilities. We also validate the hypothesis that marital status contributes to the gender pension gap by leading to gender differences in labor market outcomes. Our findings underscore that efforts to address the gender pension gap must consider the complex interplay of explanatory factors. We acknowledge the limitations of our analysis, particularly its omission of important explanatory variables. Our findings are, however, of relevance as they contribute to the understanding of the gender pension gap in Germany, providing a basis for policy recommendations and further research. Specifically, our study highlights the need to promote higher female labor market participation. Our results also suggest that a significant part of the gender pension gap remains unexplained, implying the presence of unobserved factors or potential discrimination, an area for future investigations. | |
