Labour-force withdrawal program are an important unemployment policy instrument for certain governments in continental Europe. Two widely used interventions are government subsidised early-retirement programs and reduced working-time regulations. Most economists, however, have cast doubts concerning their efficacy in combatting unemployment, in part because the reduced labour force renders wages more resilient. The basic objective of this paper is to examine that wage-resiliency proposition using the application of the early-retirement program in France over the period 1984-1986.
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Paper provided by University of Ottawa, Department of Economics in its series Working Papers with number
9905e.
Find related papers by JEL classification: J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
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