Chapter

The Effects of Early Retirement on Youth Unemployment

Alain Jousten, Mathieu Lefèbvre, Sergio Perelman and Pierre Pestieau

in Social Security Programs and Retirement around the World

Published by University of Chicago Press

Published in print April 2010 | ISBN: 9780226309484
Published online February 2013 | e-ISBN: 9780226309507 | DOI: http://dx.doi.org/10.7208/chicago/9780226309507.003.0002
The Effects of Early Retirement on Youth Unemployment

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This chapter aims to derive a conclusive answer on the often cited potential for substitutability of employment of the old with that of the younger age groups. It provides some institutional background on the systems and regimes applicable to the older workers, as well as some specificity applicable to the young and describes the most important social protection schemes that provide for some form of replacement income when retiring from the labor market and when young and inactive. The nature of youth unemployment in Belgium is such that it is pretty insensitive to variations in labor demand, but rather it is the result of structural weaknesses in the areas of education, unemployment insurance, and wage formation. Furthermore, this chapter estimates the effect of incentive variables on activity rates, and documents the overall weak impact of parameters regarding the old on behavior of the young and shows that labor outcomes by gender have been slightly different over the period but they do not turn into different results than those obtained with aggregate labor market outcomes.

Keywords: employment; youth unemployment; labor market; early retirement; market outcomes

Chapter.  9771 words.  Illustrated.

Subjects: Public Economics

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