Arbeitspapier
Too old to work, too young to retire?
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.
- Language
-
Englisch
- Bibliographic citation
-
Series: Working Paper ; No. 1313
- Classification
-
Wirtschaft
Economics of the Elderly; Economics of the Handicapped; Non-labor Market Discrimination
Unemployment Insurance; Severance Pay; Plant Closings
- Subject
-
Aging
Employability
Plant Closures
Matching
- Event
-
Geistige Schöpfung
- (who)
-
Ichino, Andrea
Schwerdt, Guido
Winter-Ebmer, Rudolf
Zweimüller, Josef
- Event
-
Veröffentlichung
- (who)
-
Johannes Kepler University of Linz, Department of Economics
- (where)
-
Linz
- (when)
-
2013
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Ichino, Andrea
- Schwerdt, Guido
- Winter-Ebmer, Rudolf
- Zweimüller, Josef
- Johannes Kepler University of Linz, Department of Economics
Time of origin
- 2013
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