Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/34183 
Year of Publication: 
2007
Series/Report no.: 
IZA Discussion Papers No. 2597
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
This paper extends the job creation - job destruction approach to the labor market to take into account the life-cycle of workers. Forward looking decisions about hiring and firing depend on the time over which to recoup adjustment costs. The equilibrium is typically featured by increasing (decreasing) firing (hiring) rates with age, and a hump-shaped age-dynamics of employment. The empirical plausibility of the model is assessed by incorporating existing age-specific labor market policies in France. Finally we show that the age-dynamics of employment is optimal when the Hosios condition holds and we design the optimal age-pattern for employment policies when this condition does not apply
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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