Does increasing the retirement age increase youth unemployment? Evidence from an agent-based macro model

Siyan Chen () and Saul Desiderio
Additional contact information
Siyan Chen: Business School, Shantou University

Journal of Evolutionary Economics, 2024, vol. 34, issue 4, No 4, 847 pages

Abstract: Abstract In recent years, several OECD countries have tackled the problem of the fiscal sustainability of their pension systems by increasing the statutory retirement age, although many fear that such policies may reduce job opportunities for the young in favor of older workers. In this paper, we test such a hypothesis using an agent-based macro model suitable for the analysis of issues related to demography. Results from a number of computational experiments show that in the long run, old workers do not crowd out the young, which is consistent with the empirical evidence. Moreover, we find that increasing the retirement age does reduce job opportunities for the young in the short run, but not so much in the long run. This suggests that any pension reform increasing the retirement age should be accompanied by some protective measures for young workers.

Keywords: Agent-based models; Youth unemployment; Retirement age; Pension systems (search for similar items in EconPapers)
JEL-codes: C63 H55 J11 J21 J26 J62 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s00191-024-00873-7 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:joevec:v:34:y:2024:i:4:d:10.1007_s00191-024-00873-7

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/191/PS2

DOI: 10.1007/s00191-024-00873-7

Access Statistics for this article

Journal of Evolutionary Economics is currently edited by Uwe Cantner, Elias Dinopoulos, Horst Hanusch and Luigi Orsenigo

More articles in Journal of Evolutionary Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().