Skip to Main content Skip to Navigation
New interface
Preprints, Working Papers, ...

Too Old To Work, Too Young To Retire?

Abstract : We study whether employment prospects of old and young workers differ after a plant closure. Using Austrian administrative data, we show that old and young workers face similar displacement costs in terms of employment in the long-run, but old workers lose considerably more initially and gain later. We interpret these findings using a search model with retirement as an absorbing state, that we calibrate to match the observed patterns. Our finding is that the dynamics of relative employment losses of old versus young workers after a displacement are mainly explained by different opportunities of transition into retirement. In contrast, differences in layoff rates and job offer arrival rates cannot explain these patterns. Our results support the idea that retirement incentives, more than weak labor demand, are responsible for the low employment rates of older workers.
Document type :
Preprints, Working Papers, ...
Complete list of metadata
Contributor : Spire Sciences Po Institutional Repository Connect in order to contact the contributor
Submitted on : Wednesday, December 1, 2021 - 9:06:22 AM
Last modification on : Friday, March 25, 2022 - 3:30:43 AM


Publisher files allowed on an open archive




Andrea Ichino, Guido Schwerdt, Rudolf Winter-Ebmer, Josef Zweimüller. Too Old To Work, Too Young To Retire?. {date}. ⟨hal-03460464⟩



Record views


Files downloads