Chapter

Incentives to Retire, the Employment of the Old, and the Employment of the Young in Sweden

Mårten Palme and Ingemar Svensson

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: http://dx.doi.org/10.7208/chicago/9780226310008.003.0011
Incentives to Retire, the Employment of the Old, and the Employment of the Young in Sweden

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This chapter empirically examines the hypothesis that the increasing generosity of the social security system has decreased labor force participation among the elderly. It then investigates whether labor force participation among older workers affects employment among younger workers. The chapter is organized as follows. Section 10.2 gives a short description of the history of Sweden's pension schemes. Section 10.3 investigates policies based on the argument for providing job opportunities for the young. Section 10.4 analyzes to what extent program provisions affect employment of older workers. Section 10.5 presents the results from the analysis of the relation between labor force participation of older workers and employment of the young. Section 10.6 draws conclusions.

Keywords: social security; labor force participation; unemployment; young workers; older workers; pensions

Chapter.  8419 words.  Illustrated.

Subjects: Public Economics

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