Old Times, Better Times? German Miners’ Knappschaften, Pay-as-you-go Pensions, and Implicit Rates of Return, 1854–1913

This paper contributes to the literature on the weakness of modern pay-as-you-go social security systems in financing pensions by taking a business and economic historical perspective on the issue. It focuses on Prussian Knappschaften (plural of Knappschaft), which provided miners with compulsory invalidity and implicit old-age insurance, and studies the period from 1854 to 1913. Knappschaften used the pay-as-you-go mechanism, and, in the long-term, came under financial pressure by the rising number of pensioners. The question to be answered is whether Knappschaften were able to off er cohorts of miners entering the system at diff erent times the same implicit rates of return. Did Knappschaften provide an intergenerationally sustainable policy, or did adjustments of contributions and other parameters decrease the dividend for insured miners over time?Insurance; implicit rates of return; Knappschaft; mining; pay-as-you-go; pensions; Prussia; welfare state

The Hazard of Merger by Absorption – Why Some Knappschaften Merged and Others Did not: 1861–1920

By the mid-19th century, following the Prussian mining reform, German miners‘ combined mutual health and pension funds took on the characteristics of social insurance and underwent a concentration process driven by mergers, liquidations, and unequal internal growth. This paper investigates the determinants of mergers by absorption among Prussian funds combined with quantitative evidence from a regression model, provides new insights into the first social-insurance merger wave in Germany. While most contemporary sources convey the impression that funds were merged to stabilize the entire insurance scheme by sorting out actuarially unviable and financially distressed funds, statistical evidence suggests that funds were absorbed over time primarily because they offered advantages to the absorbing fund and, hence, were quite attractive targets.Competing risk; financial distress; insurance; Knappschaft; liquidation; merger; mining

On the historical roots of the modern welfare state: the Knappschaft statistics of 1861 to 1920 as a source for quantitative historical social research

"This article introduces the Knappschaft statistics as a basic source for quantitative data on a very important topic in historical social research, namely the rise of the welfare state. Scholars who seek to embark upon historical social research in that direction require both qualitative and quantitative data. Exploring data sources and making data available for general use thus is crucial to systematic research and scholarly discourse. For the period 1861 to 1920, the Knappschaft statistics document the operation of the various German Knappschaftsvereine as the carriers of miners' occupational social insurance at the time. Data on the various Knappschaften are quite rich enabling us to use them as a 'historical laboratory' not merely to study the welfare positions of and social relations in a particular societal class in a particular period, but to explore more general questions related to the roots of modern welfare states, their functioning, and the challenges they face. To stress this point, the author combines the concise overview of the Knappschaft statistics with a straightforward application to the question of the consequences of aging in a pay-as-you-go pension system." (author's abstract

The welfare state evolves: German Knappschaften, 1854 - 1923

This paper reviews the German miners' model of mutual insurance from its introduction in 1854 to its basic reformation in 1923. Its core feature was the provision of cash benefits for compensation of income losses due to temporary sickness and permanent invalidity or death of the bread-winner. The carriers of the insurance scheme, the Knappschaften, date back to medieval times, and the Knappschaft is still present today as the second pillar of the German statutory old-age insurance. This paper aims to establish the Knappschaft insurance's main characteristics in the period under consideration. These include, for example, compulsory membership, shared financing between employed miners and entrepreneurs, selfmanagement, financing based on earnings-related social insurance contributions, a strong emphasis of the insurance principle, and application of the pay-as-you-go mechanism. The organisational analysis is complemented quantitatively, on the one hand, by evidence on increasing generosity and, on the other hand, evidence on increasing financial distress substantiating the shadow side of a maturing pay-as-you-go based scheme. In particular, Knappschaften experienced all trends we commonly associate with today's systems in the second half of the 20th century as early as in the 19th century, even before the Bismarckian insurance was installed from 1883 on: Increasing social security spending, rising pensioners-tocontributors ratios, concentration and pressure on finances forcing Knappschaften to adjust their fiscal policy according to the mechanics of pay-as-you-go. --Bismarck,mining,pay-as-you-go,social security,welfare state

The welfare state evolves : German Knappschaften, 1854 - 1923

This paper reviews the German miners? model of mutual insurance from its introduction in 1854 to its basic reformation in 1923. Its core feature was the provision of cash benefits for compensation of income losses due to temporary sickness and permanent invalidity or death of the bread-winner. The carriers of the insurance scheme, the Knappschaften, date back to medieval times, and the Knappschaft is still present today as the second pillar of the German statutory old-age insurance. This paper aims to establish the Knappschaft insurance?s main characteristics in the period under consideration. These include, for example, compulsory membership, shared financing between employed miners and entrepreneurs, selfmanagement, financing based on earnings-related social insurance contributions, a strong emphasis of the insurance principle, and application of the pay-as-you-go mechanism. The organisational analysis is complemented quantitatively, on the one hand, by evidence on increasing generosity and, on the other hand, evidence on increasing financial distress substantiating the shadow side of a maturing pay-as-you-go based scheme. In particular, Knappschaften experienced all trends we commonly associate with today?s systems in the second half of the 20th century as early as in the 19th century, even before the Bismarckian insurance was installed from 1883 on: Increasing social security spending, rising pensioners-tocontributors ratios, concentration and pressure on finances forcing Knappschaften to adjust their fiscal policy according to the mechanics of pay-as-you-go

The welfare state evolves : German Knappschaften, 1854 - 1923

This paper reviews the German miners? model of mutual insurance from its introduction in 1854 to its basic reformation in 1923. Its core feature was the provision of cash benefits for compensation of income losses due to temporary sickness and permanent invalidity or death of the bread-winner. The carriers of the insurance scheme, the Knappschaften, date back to medieval times, and the Knappschaft is still present today as the second pillar of the German statutory old-age insurance. This paper aims to establish the Knappschaft insurance?s main characteristics in the period under consideration. These include, for example, compulsory membership, shared financing between employed miners and entrepreneurs, selfmanagement, financing based on earnings-related social insurance contributions, a strong emphasis of the insurance principle, and application of the pay-as-you-go mechanism. The organisational analysis is complemented quantitatively, on the one hand, by evidence on increasing generosity and, on the other hand, evidence on increasing financial distress substantiating the shadow side of a maturing pay-as-you-go based scheme. In particular, Knappschaften experienced all trends we commonly associate with today?s systems in the second half of the 20th century as early as in the 19th century, even before the Bismarckian insurance was installed from 1883 on: Increasing social security spending, rising pensioners-tocontributors ratios, concentration and pressure on finances forcing Knappschaften to adjust their fiscal policy according to the mechanics of pay-as-you-go

How Political Were Airbus and Boeing Sales in the 1970s and 1980s?

When, in the second half of the 1960s, governments and aircraft manufacturers in Western Europe discussed a possible joint project called “Airbus”, the markets for civil jet aircraft were dominated by two US firms, Boeing and McDonnell Douglas. After a disappointing start, Airbus Industrie, founded in 1970, had become a serious competitor only a decade later. Since the early 2000s, Airbus and Boeing have been competing head-to-head for market leadership for jet aircraft with more than 100 seats. Boeing has persistently complained about Airbus receiving loans on favourable terms and other subsidies from European governments, and that the latter would use political pressure to make operators buy Airbus aircraft. Based on a record of all wide-body jets delivered between 1969 and 1989 and a dataset built thereupon on all airlines having acquired a brand-new wide-body, we subject the latter reproach to an empirical test by asking for the political determinants of Airbus and Boeing sales. We find suggestive evidence for airlines’ ownership status and their home countries’ former colonial ties to as well as trade relations with and development aid flows from the Airbus consortium member countries and the US to have mattered

The German Cliometrics Database

This short article introduces the German Cliometrics Database as the foundation for an article by Jopp and Spoerer (2024) who trace cliometric research on German history. This newly constructed database of every publication that (1) contributes to the historiography of Germany and (2) employs, as a baseline, inferential statistics enables researchers to find cliometric studies related to their own work much more efficiently. Even though no full texts are provided alongside the data file, the collected abstracts or, respectively, summaries for every publication in the database allow for some baseline text mining approaches. Along with the remaining information provided, they may also form the basis for broader bibliometric or historiographical studies

Civil Aircraft Procurement and Colonial Ties: Evidence on the market for jetliners, 1952-1989

We investigate the extent to which (quasi-)colonial ties played a role in the procurement of jet aircraft by airlines in the Global South. Because we do not have access to archival data on the sensitive issue of aircraft procurement, we take an indirect empirical approach. Our investigation is based on a dataset including all Western jet aircraft delivered between 1952 and 1989. We ask if, to what extent and how long airlines from former British, French, Dutch, and US (quasi-)colonies tended to buy jets from their former or, respectively, most recent colonial master. We compare the (ex-ante) expected geographical distribution of politically unbiased jet deliveries to the (ex post) actual historical and potentially biased distribution. We find that colonial ties to former colonial masters from Europe especially mattered until the early/mid 1970s when, triggered by the two oil price crises, pure economic motives gained more significance in informing procurement decisions