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Ageing workforce and productivity: the unintended effects of retirement regulation in Italy

Author

Listed:
  • Roberto Gabriele

    (University of Trento)

  • Enrico Tundis

    (University of Trento
    Istituto di Statistica della Provincia Autonoma di Trento (ISPAT))

  • Enrico Zaninotto

    (University of Trento)

Abstract

Making use of the quasi-natural experimental setting provided by the unexpected and sudden change in Italian retirement legislation at the end of 2011 (Fornero law), this article estimates the effect on productivity of a reduction of sorting mechanisms among older workers. The estimation uses provincial-level data. The increase of retirement age and restrictions on early retirement plans locked older employees into the workplace with a negative impact on productivity. Assessing the sorting effect contributes to the age-productivity debate, isolating more precisely the average effect of ageing on productivity.

Suggested Citation

  • Roberto Gabriele & Enrico Tundis & Enrico Zaninotto, 2018. "Ageing workforce and productivity: the unintended effects of retirement regulation in Italy," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(1), pages 163-182, April.
    • Handle: RePEc:spr:epolit:v:35:y:2018:i:1:d:10.1007_s40888-017-0079-x
    DOI: 10.1007/s40888-017-0079-x
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    Cited by:

    1. Zheng Shen & James Yang, 2021. "A Simulation Study of the Effect of Delayed Retirement on Welfare of the Elderly: Evidence from China," SAGE Open, , vol. 11(2), pages 21582440211, June.
    2. De Brouwer, Octave & Tojerow, Ilan, 2023. "The Growth of Disability Insurance in Belgium: Determinants and Policy Implications," IZA Discussion Papers 16376, Institute of Labor Economics (IZA).
    3. Jasmina Barakovic Husic & Francisco José Melero & Sabina Barakovic & Petre Lameski & Eftim Zdravevski & Petra Maresova & Ondrej Krejcar & Ivan Chorbev & Nuno M. Garcia & Vladimir Trajkovik, 2020. "Aging at Work: A Review of Recent Trends and Future Directions," IJERPH, MDPI, vol. 17(20), pages 1-15, October.

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    More about this item

    Keywords

    Ageing workforce; Labour productivity; Pension reforms; Quasi-natural experiments;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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