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The Role of Institutions in Transatlantic Employment Differences: A Life-Cycle View

Author

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  • Arnaud Chéron
  • Jean-Olivier Hairault
  • François Langot

Abstract

Our objective in this paper is to show, by adopting a life-cycle unemployment equilibrium approach, that labor market institutions such as unemployment benefits, employment protection and mandatory retirement age have an age-differentiated impact which can explain age-differentiated employment gaps between the US and French economies. Whereas the employment rates are quite similar for middle-aged workers, weaker rotations on the labor market lead to lower employment rates for younger workers. Moreover, the closer to 60 the retirement age, the lower the employment rate for workers aged between 50 and 59.

Suggested Citation

  • Arnaud Chéron & Jean-Olivier Hairault & François Langot, 2009. "The Role of Institutions in Transatlantic Employment Differences: A Life-Cycle View," Annals of Economics and Statistics, GENES, issue 95-96, pages 121-138.
    • Handle: RePEc:adr:anecst:y:2009:i:95-96:p:121-138
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    Cited by:

    1. Arnaud Chéron & Jean-Olivier Hairault & François Langot, 2013. "Life-Cycle Equilibrium Unemployment," Journal of Labor Economics, University of Chicago Press, vol. 31(4), pages 843-882.
    2. Créchet, Jonathan & Lalé, Etienne & Tarasonis, Linas, 2026. "Life-cycle worker flows and cross-country differences in aggregate employment," Journal of Monetary Economics, Elsevier, vol. 159(C).
    3. Etienne Lalé, 2018. "Turbulence and the employment experience of older workers," Quantitative Economics, Econometric Society, vol. 9(2), pages 735-784, July.

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