Distance to Retirement and Older Workers‘ Employment

The Case for Delaying the Retirement Age

Datos Bibliográficos

ID19040562
AutoresJean‐Olivier Hairault (autor de correspondencia), Jean-Olivier Hairault, Thepthida Sopraseuth (0000-0002-7458-0365), François Langot (0000-0001-7737-5319)
Año2010
Volumen8
Número5
Páginas1034-1076
Fecha de publicación2010-09-01
Open AccessSí
TipoARTICLE
RevistaJournal of the European Economic Association (JOURNAL)
Identificadores de la revistaISSN: 1542-4766 • E-ISSN: 1542-4774
EditorialOxford University Press (OUP) (PUBLISHER)
DOI10.1111/j.1542-4774.2010.tb00547.x
OpenAlexW2047303181
IdiomaEN
Citas recibidas16
Referencias citadas22

This paper presents empirical evidence and a theoretical foundation in favor of the view that the retirement age decision affects older workers ’ em-ployment prior to retirement. To the extent that there are search frictions on the labor market, the return on jobs is determined by their expected dur-ation: the time to retirement is then key to understanding older workers’ employment. Countries with a retirement age of 60 are indeed characterized by lower employment rates for workers aged 55-59. Based on the French Labor Force Survey, we show that the likelihood of employment is signific-antly affected by the distance to retirement, in addition to age and other relevant variables. We then extend McCall’s (1970) job search model by explicitly integrating life-cycle features with the retirement decision. Using simulations, we show that the distance effect in interaction with the gener-osity of unemployment benefits and the depressed demand for older workers

Demographic economics · Economics · Empirical evidence · Generosity · Labour economics · Pension · Retirement age · Social security · Unemployment · Employment and Welfare Studies · Labor market dynamics and wage inequality · Retirement, Disability, and Employment · Finance

Herramientas

Abrir DOISci-Hub