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Young-in Old-out: a new evaluation

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  • Michela Bia
  • Pierre-Jean Messe
  • Roberto Leombruni

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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Paper provided by TEPP in its series TEPP Working Paper with number 2010-14.

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Date of creation: 2010
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Handle: RePEc:tep:teppwp:wp10-14

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Postal: Université Paris-Est Marne La Vallée, 5 bd Descartes, 77454 Champs sur Marne
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  1. repec:nbr:nberwo:13029 is not listed on IDEAS
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  15. 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.
  16. 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).
  17. 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.
  18. Pierre Pestieau & Mathieu Lefèbvre & Alain Jousten & Sergio Perelman, 2008. "The Effects of Early Retirementon Youth Unemployment," IMF Working Papers 08/30, International Monetary Fund.
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  20. Melika Ben Salem & Didier Blanchet & Antoine Bozio & Muriel Roger, 2010. "Labor Force Participation by the Elderly and Employment of the Young: The Case of France," NBER Chapters, in: Social Security Programs and Retirement around the World: The Relationship to Youth Employment, pages 119-146 National Bureau of Economic Research, Inc.
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