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Too old to work, too young to retire?


Ichino, Andrea; Schwerdt, Guido; Winter-Ebmer, Rudolf; Zweimüller, Josef (2017). Too old to work, too young to retire? The Journal of the Economics of Ageing, 9:14-29.

Abstract

We study whether employment prospects of old and young workers differ after a plant closure. Using Austrian administrative data and a combination of exact matching and fixed effects, we show that old and young workers face similarly large displacement costs in terms of employment in the long-run, but old workers lose considerably more initially and gain later. Effects on wages of displaced workers are not age-dependent. We interpret these findings in the light of a standard job search model augmented to allow for an absorbing state capturing the option of “early retirement”.

Abstract

We study whether employment prospects of old and young workers differ after a plant closure. Using Austrian administrative data and a combination of exact matching and fixed effects, we show that old and young workers face similarly large displacement costs in terms of employment in the long-run, but old workers lose considerably more initially and gain later. Effects on wages of displaced workers are not age-dependent. We interpret these findings in the light of a standard job search model augmented to allow for an absorbing state capturing the option of “early retirement”.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Uncontrolled Keywords:Aging; employability; plant closures; matching
Language:English
Date:2017
Deposited On:21 Dec 2016 13:04
Last Modified:23 May 2017 01:01
Publisher:Elsevier
ISSN:2212-828X
Publisher DOI:https://doi.org/10.1016/j.jeoa.2016.07.001

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