Too Old To Work, Too Young To Retire?

Andrea Ichino, Guido Schwerdt, Rudolf Winter-Ebmer and Josef Zweimüller ()

Working Papers from HAL

Abstract: We study whether employment prospects of old and young workers differ after a plant closure. Using Austrian administrative data, we show that old and young workers face similar displacement costs in terms of employment in the long-run, but old workers lose considerably more initially and gain later. We interpret these findings using a search model with retirement as an absorbing state, that we calibrate to match the observed patterns. Our finding is that the dynamics of relative employment losses of old versus young workers after a displacement are mainly explained by different opportunities of transition into retirement. In contrast, differences in layoff rates and job offer arrival rates cannot explain these patterns. Our results support the idea that retirement incentives, more than weak labor demand, are responsible for the low employment rates of older workers.

Keywords: employment; age; plant closure (search for similar items in EconPapers)
Date: 2014-05-01
Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03460464
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://sciencespo.hal.science/hal-03460464/document (application/pdf)

Related works:
Journal Article: Too old to work, too young to retire? (2017)
Working Paper: Too Old to Work, Too Young to Retire? (2013)
Working Paper: Too Old to Work, Too Young to Retire? (2013)
Working Paper: Too Old to Work, too Young to Retire? (2007)
Working Paper: Too Old to Work, Too Young to Retire? (2007)
Working Paper: Too Old to Work, Too Young to Retire? (2007)
Working Paper: Too Old to Work, Too Young to Retire? (2007)
Working Paper: Too Old to Work, Too Young to Retire? (2007)
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:hal:wpaper:hal-03460464

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().