Releasing Jobs for the Young?

James Banks, Richard Blundell, Antoine Bozio and Carl Emmerson

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:
Releasing Jobs for the Young?

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This chapter sheds light on the importance of incentives to retire on older labor force supply in the United Kingdom over the last forty years and describes the reforms to pension system and early retirement schemes to assess in what respect are the changes in financial incentives exogenous from the labor market situation. The UK case is very interesting in that respect, as most of the pension reforms—and, arguably, all major reforms in the 1980s and 1990s—were motivated more by public finance considerations (both short and long run) than by unemployment. There are many debates concerning the relationship between the number of older and younger workers in the United Kingdom that have led to changes in policies to foster early exit of older workers. This chapter also contains descriptive figures comparing the labor force participation of older individuals in the United Kingdom with the evolution of employment for younger individuals as well as a cross-country comparison of the French and the UK experience. Job Release Scheme (JRS), the major UK early retirement scheme of the late 1970s and early 1980s, are detailed and estimations of what could be considered to be a “natural experiment” of specific incentives to encourage early retirement are presented.

Keywords: United Kingdom; youth unemployment; early retirement; labor force; jobs

Chapter.  9757 words.  Illustrated.

Subjects: Public Economics

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