Workforce Aging, Pension Reforms, and Firm Outcomes

Francesca Carta, Francesco D'Amuri and Till von Wachter

No 28407, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper quantifies the effect of a policy-induced sharp increase in retirement ages on input mix and economic outcomes of firms using Italian matched worker-firm data. Data on lifetime pension contributions are used to calculate the expected additional number of older workers employed by each firm due to the reform. Resulting instrumental variable estimates show an increase in older workers leads to a precisely estimated rise in employment of younger workers, value added, and total labor costs at constant labor productivity and unit labor costs. The findings suggest rising institutional retirement ages can help firms to retain valuable older employees.

JEL-codes: H55 J23 J26 (search for similar items in EconPapers)
Date: 2021-01
New Economics Papers: this item is included in nep-age, nep-dem, nep-eur and nep-lma
Note: AG LS
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.nber.org/papers/w28407.pdf (application/pdf)

Related works:
Working Paper: workforce aging, pension reforms, and firm outcomes (2020)
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:nbr:nberwo:28407

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w28407

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().