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From internal to transitional labour markets? Firms restructuring and early retirement in France

Author

Listed:
  • Luc Behaghel

    (LEA - Laboratoire d'Economie Appliquée - INRA - Institut National de la Recherche Agronomique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Jérôme Gautié

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

Retirement from the labour market is a critical transition on which the political debate has focused in many European countries during the last few years, raising the issue of the sustainability of pension systems. One of the most striking features of the French labour market is the very low participation rate of older workers. This coincides with the intensive use of early retirement public funded schemes (ERS) - which are usually considered as "bad transitions". But the necessary reform does not rely only on the suppression of ERS. One must analyse why firms so intensively used early exits in the past years, i.e. what economic - and also social - factors contribute to explain the use of ERS. The paper intends to provide both theoretical insights and empirical evidence on this issue - referring to the French case. It relies on both quantitative and qualitative (i.e. case studies) empirical work. It claims that changes in technology, in organisational practices and more globally in internal labour markets are key factors to explain the low employment rates of older workers. These changes were facilitated by ERSs, but, in turn, they also increased the demand for these schemes. This path dependency phenomenon may reveal hard to counter.

Suggested Citation

  • Luc Behaghel & Jérôme Gautié, 2008. "From internal to transitional labour markets? Firms restructuring and early retirement in France," Post-Print hal-00266365, HAL.
  • Handle: RePEc:hal:journl:hal-00266365
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    Cited by:

    1. Geoff Mason & Hiroatsu Nohara, 2010. "How well-rewarded is inter-firm mobility in the labour market for scientists and engineers? New evidence from the UK and France," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 19(5), pages 459-480.
    2. Behaghel, Luc & Crépon, Bruno & Sédillot, Béatrice, 2008. "The perverse effects of partial employment protection reform: The case of French older workers," Journal of Public Economics, Elsevier, vol. 92(3-4), pages 696-721, April.
    3. Danièle Guillemot & Aurélie Peyrin, 2010. "Les salariés de plus de 50 ans et l'informatique : Une comparaison public-privé," Working Papers 2010-18, Center for Research in Economics and Statistics.

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