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Ageing and Unemployment

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  • Schmidt, Christoph M

Abstract

While ageing is accepted as a major problem for most industrialized societies, its labour market consequences are not yet fully understood. This paper analyses the effects of changes in the age composition of the Federal Republic of Germany on the incidence of unemployment in different sex-age groups. The German population has aged substantially in recent decades because of declining fertility and a halt in guestworker recruitment. The German wage-setting process appears to be characterized by the presence of a strong union movement that hampers flexible wage adjustments. Thus, age structure variations can be expected to lead to fluctuations in age-specific unemployment rates. In general, this intuition is confirmed by the estimations presented here. A strong positive relationship between the size of a cohort and its relative unemployment experience can only be established formally for a few sex-age groups, however.

Suggested Citation

  • Schmidt, Christoph M, 1992. "Ageing and Unemployment," CEPR Discussion Papers 693, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:693
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    Citations

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    Cited by:

    1. Sanders Korenman & David Neumark, 2000. "Cohort Crowding and Youth Labor Markets (A Cross-National Analysis)," NBER Chapters,in: Youth Employment and Joblessness in Advanced Countries, pages 57-106 National Bureau of Economic Research, Inc.
    2. Jochen Michaelis & Martin Debus, 2011. "Wage and (un-)employment effects of an ageing workforce," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(4), pages 1493-1511, October.
    3. Begona EguÌa & Cruz Angel EchevarrÌa, "undated". "QuÈ parte de las variaciones de las tasas de desempleo puede explicarse por cambios en las pirÈmides poblacionales en Espana?," Studies on the Spanish Economy 118, FEDEA.

    More about this item

    Keywords

    Ageing; Cohort Size; Cointegration; Migration; Unemployment; Unions;

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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