Retirement of Older Workers and Employment of the Young

A.S. Kalwij, A. Kapteyn, K. de Vos

Research output: Contribution to journalArticleScientificpeer-review

Abstract

Policy makers have often argued that an additional benefit of facilitating early retirement is that it creates employment for the young. This may happen if older and younger workers are substitutes. Nowadays policies are aimed at increasing employment of older people to counter the economic consequences of an aging population. Opponents of such policies argue that these will adversely affect youth employment. This paper revisits the nexus between employment of older and younger workers, if only to put any concerns for adverse effects of later retirement on youth employment to rest. To empirically investigate this issue we estimate a dynamic model of employment of the young, prime age and old people using panel data of 22 OECD countries over the time period 1960–2008. Our empirical analysis does not support the hypothesis that employment of the young and old are substitutes and finds some minor complementarities. This suggests that encouraging later retirement will have no adverse effect on youth employment.
Original languageEnglish
Pages (from-to)341-359
JournalDe Economist
Volume158
Issue number4
Publication statusPublished - 2010

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Retirement
Older workers
Youth employment
Older people
Substitute
Young workers
Politicians
Early retirement
Aging population
OECD countries
Economic consequences
Empirical analysis
Panel data
Complementarity

Cite this

Kalwij, A. S., Kapteyn, A., & de Vos, K. (2010). Retirement of Older Workers and Employment of the Young. De Economist, 158(4), 341-359.
Kalwij, A.S. ; Kapteyn, A. ; de Vos, K. / Retirement of Older Workers and Employment of the Young. In: De Economist. 2010 ; Vol. 158, No. 4. pp. 341-359.
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Kalwij, AS, Kapteyn, A & de Vos, K 2010, 'Retirement of Older Workers and Employment of the Young', De Economist, vol. 158, no. 4, pp. 341-359.

Retirement of Older Workers and Employment of the Young. / Kalwij, A.S.; Kapteyn, A.; de Vos, K.

In: De Economist, Vol. 158, No. 4, 2010, p. 341-359.

Research output: Contribution to journalArticleScientificpeer-review

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Kalwij AS, Kapteyn A, de Vos K. Retirement of Older Workers and Employment of the Young. De Economist. 2010;158(4):341-359.