Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/161356
Authors: 
Bertoni, Marco
Brunello, Giorgio
Year of Publication: 
2017
Series/Report no.: 
IZA Discussion Papers 10733
Abstract: 
Pension reforms that raise minimum retirement age increase the pool of senior individuals aged 50+ who are not eligible to retire from the labour market. Using data from Italian provinces and regions and an instrumental variable strategy, we estimate the effects of local changes in the supply of workers aged between 50 and minimum retirement age on youth, prime age and senior employment. Results based on provincial data from 2004 to 2015, a period characterized by declining real GDP, indicate that adding one thousand additional senior individuals to the local labour supply reduces employment in the age group 16-34 by 189 units. Estimates based on longer regional data covering the period 1996 to 2015, that includes also a period of growing real GDP, show smaller negative effects for young workers, suggesting that the employment costs of pension reforms may be lower when the economy is growing.
Subjects: 
pension reforms
lump of labour
youth employment
local labour markets
JEL: 
J26
H55
J21
J14
J11
Document Type: 
Working Paper

Files in This Item:
File
Size
645.61 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.