IDEAS home Printed from https://ideas.repec.org/p/hal/cesptp/hal-02541388.html
   My bibliography  Save this paper

Dismissals scheduling and the employment of older workers

Author

Listed:
  • Olivier Baguelin

    (EUREQUA - Equipe Universitaire de Recherche en Economie Quantitative - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

A model is built to study the joint effect on management of the older workforce of three crucial institutions: employment protection, the pension system, and the unemployment insurance (UI). More precisely, the interest is in the impact of corresponding settings (dismissal costs, replacement rates, UI benefit duration, statutory retirement age) on the age, at the date of job termination, of workers who experience a spell of unemployment before retiring. The opportunity cost to the worker of early exit from employment is shown to be increasing with the time distance until retirement. However, under specific assumptions particularly relevant within the continental Europe context, it is shown that corresponding marginal opportunity cost is very low provided time until retirement remains below the potential UI benefit duration (Lambda), much higher above. This makes dismissals at a time distance until retirement close to Lambda much more likely than at a shorter one. Comparative statics suggests that age (at the date of dismissal) is increasing with wage and decreasing with Lambda.

Suggested Citation

  • Olivier Baguelin, 2016. "Dismissals scheduling and the employment of older workers," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-02541388, HAL.
  • Handle: RePEc:hal:cesptp:hal-02541388
    Note: View the original document on HAL open archive server: https://hal.science/hal-02541388
    as

    Download full text from publisher

    File URL: https://hal.science/hal-02541388/document
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Baguelin, Olivier & Remillon, Delphine, 2014. "Unemployment insurance and management of the older workforce in a dual labor market: Evidence from France," Labour Economics, Elsevier, vol. 30(C), pages 245-264.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Khoury, Laura, 2023. "Unemployment benefits and redundancies: Incidence and timing effects," Journal of Public Economics, Elsevier, vol. 226(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nathalie Greenan & Pierre-Jean Messe, 2018. "Transmission of vocational skills in the second part of careers: the effect of ICT and management changes," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 52(1), pages 1-16, December.
    2. Albanese, Andrea & Picchio, Matteo & Ghirelli, Corinna, 2020. "Timed to Say Goodbye: Does Unemployment Benefit Eligibility Affect Worker Layoffs?," Labour Economics, Elsevier, vol. 65(C).
    3. Kruse, Herman & Myhre, Andreas, 2021. "Early Retirement Provision for Elderly Displaced Workers," MPRA Paper 109431, University Library of Munich, Germany.
    4. repec:iab:iabjlr:v:52:i:1:p:art.6 is not listed on IDEAS
    5. Nathalie Greenan & Pierre-Jean Messe, 2018. "Transmission of vocational skills in the second part of careers: the effect of ICT and management changes," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 52(1), pages 1-16, December.
    6. Gałecka-Burdziak, Ewa & Góra, Marek & Jessen, Jonas & Jessen, Robin & Kluve, Jochen, 2021. "The effects of shortening potential benefit duration: Evidence from regional cut-offs and a policy reform," Ruhr Economic Papers 911, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    7. Yashiro, Naomitsu & Kyyrä, Tomi & Hwang, Hyunjeong & Tuomala, Juha, 2020. "Technology, Labour Market Institutions and Early Retirement: Evidence from Finland," IZA Discussion Papers 13990, Institute of Labor Economics (IZA).
    8. Jessen, Jonas & Jessen, Robin & Galecka-Burdziak, Ewa & Góra, Marek & Kluve, Jochen, 2023. "The Micro and Macro Effects of Changes in the Potential Benefit Duration," IZA Discussion Papers 15978, Institute of Labor Economics (IZA).
    9. Laura Khoury & Clément Brébion & Simon Briole, 2019. "Entitled to Leave: the Impact of Unemployment Insurance Eligibility on Employment Duration and Job Quality," Working Papers halshs-02393383, HAL.
    10. Kyyrä, Tomi & Pesola, Hanna, 2020. "Long-term effects of extended unemployment benefits for older workers," Labour Economics, Elsevier, vol. 62(C).
    11. Laura Khoury, 2019. "Unemployment Benefits and the Timing of Redundancies: Evidence from Bunching," PSE Working Papers halshs-02057145, HAL.
    12. Khoury, Laura, 2023. "Unemployment benefits and redundancies: Incidence and timing effects," Journal of Public Economics, Elsevier, vol. 226(C).
    13. Octave Brouwer & Ilan Tojerow, 2024. "Old-age unemployment and labour supply: an application to Belgium," Empirical Economics, Springer, vol. 67(1), pages 253-287, July.
    14. Laura Khoury, 2021. "Unemployment Benefits and the Timing of Redundancies," Working Papers halshs-02057145, HAL.
    15. Conny Wunsch & Véra Zabrodina, 2023. "Unemployment Insurance with Response Heterogeneity," CESifo Working Paper Series 10704, CESifo.
    16. repec:hal:journl:hal-04455608 is not listed on IDEAS
    17. Kruse, Herman & Myhre, Andreas, 2021. "Early Retirement Provision for Elderly Displaced Workers," MPRA Paper 118689, University Library of Munich, Germany, revised 21 Sep 2023.
    18. Arranz, José M. & García-Serrano, Carlos, 2020. "Does unemployment benefit duration affect inflows into unemployment? The impact of a law change for older workers," The Journal of the Economics of Ageing, Elsevier, vol. 17(C).
    19. Bengtsson, Mats & König, Stefanie & Schönbeck, Simon & Wadensjö, Eskil, 2022. "Leaving the Labor Market Early in Sweden – Learning from International Experience," IZA Discussion Papers 15327, Institute of Labor Economics (IZA).
    20. Anne LAMBERT & Delphine REMILLON & Mariona SEGÚ, 2023. "Getting out or switching to part‐time: Gender disparities in the impacts of corporate restructuring," International Labour Review, International Labour Organization, vol. 162(4), pages 537-560, December.

    More about this item

    JEL classification:

    • J0 - Labor and Demographic Economics - - General
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:cesptp:hal-02541388. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.