Overlapping Generations; Search Unemployment; Labor Force Participation; Aging; Labor Market Policy and Institutions
Abstract :
[en] The rise of early retirement in Europe is typically attributed to the European system of taxes and transfers. A model with an imperfectly competitive labor market allows us to consider also the effects of bargaining power and of matching efficiency on pre-retirement. We find that lower bargaining power of workers and declining matching efficiency have been important determinants of early retirement in France and Germany. These structural changes, combined with early-retirement transfers and population aging, are also consistent with the employment and unemployment rates, labor share and seniority premia.
Disciplines :
Macroeconomics & monetary economics
Author, co-author :
Batyra, Anna; Sabanci University, Istanbul
de la Croix, David; Université catholique de Louvain > IRES
Pierrard, Olivier; Banque centrale du Luxembourg
Sneessens, Henri ; University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA)
External co-authors :
yes
Language :
English
Title :
Structural changes in the labor market and the rise of early retirement in France and Germany
