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Labour market regulation and retirement age

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Author Info
M. Magnani ()
Abstract

Pension system and labor market reforms are widely debated issues in all industrialized countries and especially in Europe; any change over these two aspects of the Social Security System indeed, can affect heavily the functioning of the whole economy.A preminent role in this sense is played by employment protection regulation and by the mandatory retirement age; in this paper I focus on the political economy of such social policies jointly and consider the interaction between the choice over the protection of the employees in the labour market and that over retirement age. In particular, I look at the effects of the turnover generated either by temporary, selective exits due to the dynamic of the labour market or by permanent, non-selective exits due to retirements. The degree of employment protection and the mandatory retirement age emerge as a result of the political bargaining between three social groups: young, high and low prductivity old. Workforce composition in this setting defines the efficiency of the economy and determine the rise of a social consensus towards different assets of the Social Security System

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Publisher Info
Paper provided by Department of Economics, Parma University (Italy) in its series Economics Department Working Papers with number 2005-EP02.

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Length: 44 pages
Date of creation: 2005
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Handle: RePEc:par:dipeco:2005-ep02

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Related research
Keywords: social security turnover on the labor market political equilibria employment protection retirement age

Other versions of this item:

Find related papers by JEL classification:
D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior
H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs

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  1. Persson, Torsten & Tabellini, Guido, 1997. "Political Economics and Macroeconomic Policy," CEPR Discussion Papers 1759, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  2. Casey B Mulligan, 1999. "Gerontocracy, Retirement, and Social Security," University of Chicago - George G. Stigler Center for Study of Economy and State 154, Chicago - Center for Study of Economy and State. [Downloadable!]
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  3. Axel Börsch-Supan & Tito Boeri & Guido Tabellini, 2002. "Would you Like to Reform the Pension System?," MEA discussion paper series 02007, Mannheim Research Institute for the Economics of Aging (MEA), University of Mannheim. [Downloadable!]
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  4. Boeri, Tito & Conde-Ruiz, José Ignacio & Galasso, Vincenzo, 2003. "Protecting Against Labour Market Risk: Employment Protection or Unemployment Benefits?," CEPR Discussion Papers 3990, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  5. Conde-Ruiz, José Ignacio & Galasso, Vincenzo, 2000. "Early Retirement," CEPR Discussion Papers 2589, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  6. Conde-Ruiz, José Ignacio & Galasso, Vincenzo, 1999. "Positive Arithmetic of the Welfare State," CEPR Discussion Papers 2202, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  7. Becker, Gary S, 1976. "Altruism, Egoism, and Genetic Fitness: Economics and Sociobiology," Journal of Economic Literature, American Economic Association, vol. 14(3), pages 817-26, September. [Downloadable!] (restricted)
  8. Loewy, Michael B., 1988. "Equilibrium policy in an overlapping generations economy," Journal of Monetary Economics, Elsevier, vol. 22(3), pages 485-499. [Downloadable!] (restricted)
  9. Laurence J. Kotlikoff & Robert W. Rosenthal, 1994. "Some Inefficiency Implication of Generational Politics and Exchange," NBER Working Papers 3354, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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This page was last updated on 2008-11-13.


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