Labor Force Participation by the Elderly and Employment of the young

Melika Ben Salem, Didier Blanchet, Antoine Bozio and Muriel Roger

in Social Security Programs and Retirement around the World

Published by University of Chicago Press

Published in print October 2007 | ISBN: 9780226310176
Published online February 2013 | e-ISBN: 9780226310008 | DOI:
Labor Force Participation by the Elderly and Employment of the young

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This chapter assesses the impact of early retirement incentives on youth unemployment in France. It adopts a strategy involving two steps. The first one is to build indicators that measure the intensity of these incentives. These indicators are then used as explanatory variables for labor market outcomes of the different age groups. Evidence suggests that an increase in old workers' labor force participation is correlated with an increase in the employment rates of young workers, and a decrease in their unemployment rate. Even when controlling for the economic cycle, this positive association remains.

Keywords: early retirement; retirement incentives; youth unemployment; labor force; labor market

Chapter.  11778 words.  Illustrated.

Subjects: Public Economics

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