Declining bargaining power of workers and the rise of early retirement in Europe
Anna Batyra (),
David de la Croix (),
Olivier Pierrard () and
Henri Sneessens ()
No 13-6, GIAM Working Papers from Galatasaray University Economic Research Center
We offer an alternative explanation for the decline in labor force participation of senior workers. Typically, tax and transfer explanations have been proposed. On the contrary, a model with imperfectly competitive labor market allows to consider as well the effects of a drop in bargaining power, which would not be possible in a purely neoclassical framework. We find that a decline in the bargaining power of workers, which has taken place in the last four decades, has largely contributed to the rise in inactivity in Europe. However, we need a combination of these two explanations, along with population aging and a fall in the matching efficiency, in order to correctly reproduce the joint evolutions of other labor market variables such as the employment and unemployment rates.
Keywords: Overlapping Generations; Search Unemployment; Labor Force Participation; Ageing; Labor Market Policy and Institutions (search for similar items in EconPapers)
JEL-codes: E24 H55 J26 J64 (search for similar items in EconPapers)
Pages: 27 pages
New Economics Papers: this item is included in nep-age, nep-dem, nep-dge, nep-lab, nep-lma and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://giam.gsu.edu.tr/wp-content/uploads/2014/07/WP-13-06.pdf Full text (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ris:giamwp:2013_006
Access Statistics for this paper
More papers in GIAM Working Papers from Galatasaray University Economic Research Center Contact information at EDIRC.
Bibliographic data for series maintained by Renginar Senses Dayangac ().