Early Retirement Programs and Wage Restraint

Empirical Evidence from France

Bibliographic Data

ID3408408
AuthorsDavid Gray (0000-0003-3812-0350, University of Ottawa, corresponding author), David M Gray
Year2002
Volume55
Issue3
Pages512-532
Publication date2002-04-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueIndustrial and Labor Relations Review (JOURNAL)
Journal identifiersISSN: 0019-7939 • E-ISSN: 2162-271X
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1177/001979390205500307
OpenAlexW2060055034
LanguageEN
References cited25

Labor-force withdrawal programs such as government-subsidized early retirement programs are an important unemployment policy instrument in some European countries. Most economists, however, have expressed doubts concerning these programs' efficacy in combating unemployment, in part because they cause a reduction in effective labor supply, which in turn places undue upward pressure on the wage level. This paper analyzes the wage pressure effects of the early retirement program in France in 1984-86. In contrast to most existing studies of such programs, which have analyzed aggregate labor markets based on the country as the unit of observation, the empirical analysis in this paper employs a partial equilibrium framework and uses less aggregated, sectoral data. The findings suggest, consistent with results from most of the aggregate labor market studies, that the early retirement program had a slight positive impact on wage pressure

Economics · Empirical evidence · Empirical research · Government (linguistics · Labour economics · Macroeconomics · Market economy · Subsidy · Unemployment · Unit (ring theory · Wage · Economic Policies and Impacts · Firm Innovation and Growth · Labor market dynamics and wage inequality · Retirement, Disability, and Employment

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