Taxation of early retirement windows and delaying retirement: the French experience
This paper investigates the effect of the 2003 French pension reform on hiring, firing and employment rates among older workers. This reform increased the mandatory retirement age and simultaneously it set a tax levied on early retirement windows paid by firms to their older workers, to encourage them to leave their job early. We use a matching model with endogenous job destruction extended to account for a mandatory retirement age and we calibrate the model with data drawn from the French Labor Force Surveys for the years 2002 and 2003. We show that in the case of a high tax rate, delaying retirement raises job separation rates, which partially offsets its positive effect on job finding rates. Consequently, the combination of an increase in the retirement age and a taxation on early retirement windows may have negative effects on the employment rate among older workers.
(This abstract was borrowed from another version of this item.)
|Date of creation:||2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.tepp.eu/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Parsons, Donald O, 1980. "The Decline in Male Labor Force Participation," Journal of Political Economy, University of Chicago Press, vol. 88(1), pages 117-34, February.
- Hutchens, Robert, 1986. "Delayed Payment Contracts and a Firm's Propensity to Hire Older Workers," Journal of Labor Economics, University of Chicago Press, vol. 4(4), pages 439-57, October.
- Chéron, Arnaud & Hairault, Jean-Olivier & Langot, François, 2008.
"Age-Dependent Employment Protection,"
IZA Discussion Papers
3851, Institute for the Study of Labor (IZA).
- Arnaud Chéron & Jean-Olivier Hairault & François Langot, 2011. "Age-Dependent Employment Protection," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00623282, HAL.
- Dorn, David & Sousa-Poza, Alfonso, 2007.
"'Voluntary' and 'Involuntary' Early Retirement: An International Analysis,"
IZA Discussion Papers
2714, Institute for the Study of Labor (IZA).
- David Dorn & Alfonso Sousa-Poza, 2010. "'Voluntary' and 'involuntary' early retirement: an international analysis," Applied Economics, Taylor & Francis Journals, vol. 42(4), pages 427-438.
- Dale T. Mortensen & Christopher A. Pissarides, 1993.
"Job Creation and Job Destruction in the Theory of Unemployment,"
CEP Discussion Papers
dp0110, Centre for Economic Performance, LSE.
- Mortensen, Dale T & Pissarides, Christopher A, 1994. "Job Creation and Job Destruction in the Theory of Unemployment," Review of Economic Studies, Wiley Blackwell, vol. 61(3), pages 397-415, July.
- Hashimoto, Masanori, 1981. "Firm-Specific Human Capital as a Shared Investment," American Economic Review, American Economic Association, vol. 71(3), pages 475-82, June.
- Roger, Muriel & Aubert, Patrick & Caroli, Eve, 2006.
"New technologies, organisation and age: firm-level evidence,"
Economics Papers from University Paris Dauphine
123456789/10051, Paris Dauphine University.
- Patrick Aubert & Eve Caroli & Muriel Roger, 2006. "New technologies, organisation and age: firm-level evidence," Economic Journal, Royal Economic Society, vol. 116(509), pages F73-F93, 02.
- Patrick Aubert & Eve Caroli & Muriel Roger, 2006. "New technologies, organisation and age: firm level evidence," Post-Print halshs-00754173, HAL.
- Walter Y. Oi, 1962. "Labor as a Quasi-Fixed Factor," Journal of Political Economy, University of Chicago Press, vol. 70, pages 538.
- Hutchens, Robert, 1999. "Social Security Benefits and Employer Behavior: Evaluating Social Security Early Retirement Benefits as a Form of Unemployment Insurance," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(3), pages 659-78, August.
- Didier Blanchet & Thierry Debrand, 2007. "Aspiration à la retraite, santé et satisfaction au travail : une comparaison européenne," Working Papers DT1, IRDES institut for research and information in health economics, revised Feb 2007.
- 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.
- Luc Behaghel & Bruno Crépon & Béatrice Sédillot, 2008. "The perverse effects of partial employment protection reform: The case of French older workers," Post-Print halshs-00754293, HAL.
- Hakola, Tuulia & Uusitalo, Roope, 2005. "Not so voluntary retirement decisions? Evidence from a pension reform," Journal of Public Economics, Elsevier, vol. 89(11-12), pages 2121-2136, December.
- Hairault, Jean-Olivier & Chéron, Arnaud & Langot, François, 2007. "Job Creation and Job Destruction over the Life Cycle: The Older Workers in the Spotlight," IZA Discussion Papers 2597, Institute for the Study of Labor (IZA).
- Oliver Jean Blanchard & Peter Diamond, 1989. "The Beveridge Curve," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 20(1), pages 1-76.
- Luc Behahel, 2006.
"La protection de l'emploi des travailleurs âgés en France : une étude de la contribution Delalande,"
Research Unit Working Papers
0603, Laboratoire d'Economie Appliquee, INRA.
- Luc Behaghel, 2007. "La protection de l'emploi des travailleurs âgés en France : une étude de la contribution Delalande," Post-Print halshs-00824896, HAL.
- 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, 09.
- repec:tpr:qjecon:v:105:y:1990:i:3:p:699-726 is not listed on IDEAS
- Hosios, Arthur J, 1990. "On the Efficiency of Matching and Related Models of Search and Unemployment," Review of Economic Studies, Wiley Blackwell, vol. 57(2), pages 279-98, April.
When requesting a correction, please mention this item's handle: RePEc:tep:teppwp:wp10-11. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sylvain)
If references are entirely missing, you can add them using this form.