Working Paper: CEPR ID: DP7490
Authors: Gilles Saint-Paul
Abstract: This paper discusses the specificities of the labor market for older workers. It discusses the implications of those specificities for the effect of labor market institutions on the employability of those workers. It shows that while unemployment benefits indexed backwards and hiring costs are likely to harm these workers more than the average worker, the converse is true for employment protection, provided it is uniform across workers and not specifically higher for older workers. It provides some evidence on the impact of labor market institutions on older workers by comparing their outcome in the United States and France. It discusses how the welfare state can be reformed in order to improve outcomes for older workers.
Keywords: employment; employment protection; labor market institutions; older workers; pensions; retirement; welfare state
JEL Codes: J23; J24; J26; J31
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Unemployment benefits indexed backwards on wages (J65) | Older workers employability (J26) |
| Hiring costs (J32) | Older workers employability (J26) |
| Employment protection legislation (K31) | Older workers employability (J26) |
| Labor market rigidities (J48) | Older workers employability (J26) |
| Unemployment benefits indexed backwards on wages (J65) | Reservation wages of older workers (J26) |
| Reservation wages of older workers (J26) | Employability of older workers (J14) |
| Hiring costs (J32) | Demand for older workers (J26) |
| Demand for older workers (J26) | Employability of older workers (J14) |
| Uniform employment protection (J65) | Older workers employability (J26) |