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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