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Employability of Older Workers in Italy and Europe

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  • Roberto Leombruni
  • Claudia Villosio

Abstract

In many European countries the participation rates of older workers are worryingly low, and Italy – within this picture – has one of the worst records, particularly for females. In this paper we investigate whether this signals an issue about their employability. Indeed, the non-participation of an individual does not point to an employability issue as long as it is a free choice of the person, and as long as it does not hinder their future participation in the labour market. To address this point we single out which are the empirically most relevant factors in shaping cross country differentials. Two selection processes emerged as having a most prominent role: the life cycle decision for women of not participating to the labour market, and the access for men and women to early retirement schemes. Controlling for these selection processes international differences reduce significantly. In both cases the main issue is the possibility that a participation choice made in a given point in time – for instance the early retirement decision – can have long lasting consequences, hindering future transition possibilities of the individuals. The magnitude of the two selection processes suggests already some policy conclusions, which are derived in the paper, and points to the need of further research to ascertain whether there are barriers to late entries and re-entries in the labour market.

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Bibliographic Info

Paper provided by LABORatorio R. Revelli, Centre for Employment Studies in its series LABORatorio R. Revelli Working Papers Series with number 43.

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Length: 21 pages
Date of creation: 2005
Date of revision:
Handle: RePEc:cca:wplabo:43

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Keywords: Employability; Ageing; Participation rate.;

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Cited by:
  1. Andrea Ichino & Guido Schwerdt & Rudolf Winter-Ebmer & Andrea Ichino, 2013. "Too Old to Work, Too Young to Retire?," Economics working papers 2013-13, Department of Economics, Johannes Kepler University Linz, Austria.
  2. Roberto Leombruni & Michele Mosca, 2011. "The lifetime gender gap in Italy. Do the pension system countervails labour market outcomes?," LABORatorio R. Revelli Working Papers Series 113, LABORatorio R. Revelli, Centre for Employment Studies.
  3. Leombruni Roberto & Mosca Michele, 2013. "The lifetime gender gap in Italy. Does the pension system countervail labour market outcomes?," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201302, University of Turin.
  4. Ichino, Andrea & Schwerdt, Guido & Winter-Ebmer, Rudolf & Zweimüller, Josef, 2013. "Too Old to Work, Too Young to Retire? Revised Version of Working Paper 220, Economics Series, October 2007," Economics Series 302, Institute for Advanced Studies.
  5. Schömann, Klaus & Siarov, Liuben & van den Heuvel, Nick, 2006. "Managing social risks through transitional labour markets," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2006-117, Social Science Research Center Berlin (WZB).

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