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

Author

Listed:
  • Arnaud Chéron

    (GAINS - Groupe d'Analyse des Itinéraires et des Niveaux Salariaux - UM - Le Mans Université)

  • Jean-Olivier Hairault

    (PSE - Paris School of Economics, CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, IZA - Institute for the Study of Labor)

  • François Langot

    (IZA - Institute for the Study of Labor, GAINS-TEPP - UM - Le Mans Université, CEPREMAP - Centre pour la recherche économique et ses applications)

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," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00623280, HAL.
  • Handle: RePEc:hal:cesptp:hal-00623280
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00623280
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    References listed on IDEAS

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    1. Marcus Hagedorn & Iourii Manovskii, 2008. "The Cyclical Behavior of Equilibrium Unemployment and Vacancies Revisited," American Economic Review, American Economic Association, vol. 98(4), pages 1692-1706, September.
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    9. Andrea Bassanini & Romain Duval, 2006. "Employment Patterns in OECD Countries: Reassessing the Role of Policies and Institutions," OECD Social, Employment and Migration Working Papers 35, OECD Publishing.
    10. Arnaud Chéron & Jean‐Olivier Hairault & François Langot, 2011. "Age‐Dependent Employment Protection," Economic Journal, Royal Economic Society, vol. 121(557), pages 1477-1504, December.
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    12. Jean-Olivier Hairault & Francois Langot & Thepthida Sopraseuth, 2010. "Distance to Retirement and Older Workers' Employment: The Case for Delaying the Retirement Age," Journal of the European Economic Association, MIT Press, vol. 8(5), pages 1034-1076, September.
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    Cited by:

    1. Etienne Lalé, 2015. "Turbulence and the Employment Experience of Older Workers," Bristol Economics Discussion Papers 15/652, Department of Economics, University of Bristol, UK, revised 13 Jul 2016.

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