Early retirement and employment of the young
AbstractPolicy makers have often argued that an additional benefit of facilitating early retirement is that it creates employment for the young. This may happen if older and younger workers are substitutes. Nowadays policy makers’ goals are to discourage early retirement to counter the economic consequences of an aging population and, interestingly, the consequences for youth employment appear to play no role in this. This paper studies the nexus between employment of older and younger workers in more depth, if only to put any concerns for adverse effects of later retirement to rest. To empirically investigate this issue we estimate a dynamic model of employment of the young, prime age and old people using panel data of 22 OECD countries over the time period 1960-2004. Our empirical analysis does not support the hypothesis that employment of the young and old are substitutes and finds some minor complementarities. This suggests that discouraging early retirement will have no adverse effect on youth employment.
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Bibliographic InfoPaper provided by Geary Institute, University College Dublin in its series Working Papers with number 200948.
Length: 16 pages
Date of creation: 16 Dec 2009
Date of revision:
Other versions of this item:
- NEP-AGE-2010-01-10 (Economics of Ageing)
- NEP-ALL-2010-01-10 (All new papers)
- NEP-LAB-2010-01-10 (Labour Economics)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Encouraging early retirement does not increase youth employment
by Economic Logician in Economic Logic on 2009-06-18 08:23:00
- Zhang, Chuanchuan, 2012. "The relationship between elderly employment and youth employment: evidence from China," MPRA Paper 37221, University Library of Munich, Germany.
- Adriaan Kalwij & Arie Kapteyn & Klaas Vos, 2010. "Retirement of Older Workers and Employment of the Young," De Economist, Springer, vol. 158(4), pages 341-359, November.
- Bruno Contini, 2010.
"Youth Employment in Europe: Institutions and Social Capital Explain Better than Mainstream Economics,"
LABORatorio R. Revelli Working Papers Series
102, LABORatorio R. Revelli, Centre for Employment Studies.
- Bruno Contini, 2009. "Youth Employment in Europe: Institutions and Social Capital Explain Better than Mainstream Economics," LABORatorio R. Revelli Working Papers Series 97, LABORatorio R. Revelli, Centre for Employment Studies.
- Contini, Bruno, 2010. "Youth Employment in Europe: Institutions and Social Capital Explain Better than Mainstream Economics," IZA Discussion Papers 4718, Institute for the Study of Labor (IZA).
- Frank van Erp & Niels Vermeer & Daniel van Vuuren, 2013. "Non-financial determinants of retirement," CPB Discussion Paper 243, CPB Netherlands Bureau for Economic Policy Analysis.
- Bruno Contini, 2012. "Youth employment in Europe: do institutions and social capital explain better than mainstream economics?," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 9(2), pages 247-277, August.
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