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Young-in Old-out: a new evaluation

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  • Michella Bia

    (CEPS/INSTEAD - Centre d'Etudes de Populations, de Pauvreté et de Politiques Socio-Economiques / International Networks for Studies in Technology, Environment, Alternatives, Development - Centre d'Etudes de Populations, de Pauvreté et de Politiques Socio-Economiques / International Networks for Studies in Technology, Environment, Alternatives, Development)

  • Pierre-Jean Messe

    (TEPP - Travail, Emploi et Politiques Publiques - CNRS : FR3435 - Université Paris-Est Marne-la-Vallée (UPEMLV), LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Université de Nantes : EA4272, GAINS - Groupe d'Analyse des Itinéraires et des Niveaux Salariaux - Université du Maine)

  • Roberto Leombruni

    (Cognetti de Martiis - Laboratorio Revelli - Università di Torino)

Abstract

In this paper we examine the consequences of a decrease in exits of older workers on youth employment, allowing for job-to-job áows. We distinguish between young workers with no experience and experienced workers and we consider jobs with di§erent experience requirements. Using a theoretical matching model with heterogeneous jobs and workers, we point out that a fall in the exit rate of older workers increases job-to-job áows, which makes Örms more reluctant to open jobs for young workers. Then, we provide some empirical evidence for the Italian case.

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Bibliographic Info

Paper provided by HAL in its series Working Papers with number halshs-00812056.

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Date of creation: Jun 2010
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Handle: RePEc:hal:wpaper:halshs-00812056

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Related research

Keywords: exit age; youth employment; propensity score; matching model; on-the-job search;

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  1. Kugler, Adriana D. & Pica, Giovanni, 2005. "Effects of Employment Protection on Worker and Job Flows: Evidence from the 1990 Italian Reform," CEPR Discussion Papers 5256, C.E.P.R. Discussion Papers.
  2. Loïc Cadiou & Julien Genet & Jean-Louis Guérin, 2002. "Evolutions démographiques et marché du travail : des liens complexes parfois contradictoires," Working Papers 2002-16, CEPII research center.
  3. Michael Sattinger, 2003. "Overlapping Labour Markets," Discussion Papers 03-06, University at Albany, SUNY, Department of Economics.
  4. Hairault, Jean-Olivier & Chéron, Arnaud & Langot, François, 2007. "Job Creation and Job Destruction over the Life Cycle: The Older Workers in the Spotlight," IZA Discussion Papers 2597, Institute for the Study of Labor (IZA).
  5. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173, September.
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  7. Belan, Pascal & Carré, Martine & Gregoir, Stéphane, 2010. "Subsidizing low-skilled jobs in a dual labor market," Labour Economics, Elsevier, vol. 17(5), pages 776-788, October.
  8. JuanJ. Dolado & Marcel Jansen & JuanF. Jimeno, 2009. "On-the-Job Search in a Matching Model with Heterogeneous Jobs and Workers," Economic Journal, Royal Economic Society, vol. 119(534), pages 200-228, 01.
  9. Dario Sciulli, 2006. "Making the Italian Labor Market More Flexible: An Evaluation of the Treu Reform," Economics Working Papers we063408, Universidad Carlos III, Departamento de Economía.
  10. Contini, Bruno & Revelli, Riccardo, 1997. "Gross flows vs. net flows in the labor market: What is there to be learned?," Labour Economics, Elsevier, vol. 4(3), pages 245-263, September.
  11. Mélika Ben Salem & Didier Blanchet & Antoine Bozio & Muriel Roger, 2008. "Labor force participation by the elderly and employment of the young: The case of France," Working Papers halshs-00586064, HAL.
  12. repec:nbr:nberwo:13029 is not listed on IDEAS
  13. Martins, Pedro S. & Novo, Alvaro A. & Portugal, Pedro, 2009. "Increasing the Legal Retirement Age: The Impact on Wages, Worker Flows and Firm Performance," IZA Discussion Papers 4187, Institute for the Study of Labor (IZA).
  14. Mortensen, Dale T & Pissarides, Christopher A, 1999. "Unemployment Responses to 'Skill-Biased' Technology Shocks: The Role of Labour Market Policy," Economic Journal, Royal Economic Society, vol. 109(455), pages 242-65, April.
  15. Mortensen, Dale T & Pissarides, Christopher A, 1994. "Job Creation and Job Destruction in the Theory of Unemployment," Review of Economic Studies, Wiley Blackwell, vol. 61(3), pages 397-415, July.
  16. Arnaud Cheron & Jean-Olivier Hairault & Francois Langot, 2006. "Job Creation, Job Destruction and the Life Cycle," 2006 Meeting Papers 641, Society for Economic Dynamics.
  17. Pierre Pestieau & Mathieu Lefèbvre & Alain Jousten & Sergio Perelman, 2008. "The Effects of Early Retirementon Youth Unemployment," IMF Working Papers 08/30, International Monetary Fund.
  18. Gautier, Pieter A, 2002. "Unemployment and Search Externalities in a Model with Heterogeneous Jobs and Workers," Economica, London School of Economics and Political Science, vol. 69(273), pages 21-40, February.
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