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The role of Institutions in Transatlantic Employment Differences: A Life-Cycle View

Author

Listed:
  • Arnaud Chéron

    (GAINS - Groupe d'Analyse des Itinéraires et des Niveaux Salariaux - UM - Le Mans Université)

  • Jean-Olivier Hairault

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, IZA - Institute for the Study of Labor)

  • François Langot

    (IZA - Institute for the Study of Labor, GAINS - Groupe d'Analyse des Itinéraires et des Niveaux Salariaux - UM - Le Mans Université, CEPREMAP - Centre pour la recherche économique et ses applications - ECO ENS-PSL - Département d'économie de l'ENS-PSL - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres)

Abstract

Our objective in this paper is to show, by adopting a life-cycle unemployment equilibrium approach, that labor market institutions such as unemployment benefits, employment protection and mandatory retirement age have an age-differentiated impact which can explain age-differentiated employment gaps between the US and French economies. Whereas the employment rates are quite similar for middle-aged workers, weaker rotations on the labor market lead to lower employment rates for younger workers. Moreover, the closer to 60 the retirement age, the lower the employment rate for workers aged between 50 and 59.

Suggested Citation

  • Arnaud Chéron & Jean-Olivier Hairault & François Langot, 2009. "The role of Institutions in Transatlantic Employment Differences: A Life-Cycle View," PSE-Ecole d'économie de Paris (Postprint) hal-00623280, HAL.
    • Handle: RePEc:hal:pseptp:hal-00623280
    DOI: 10.2307/27917406
    Note: View the original document on HAL open archive server: https://hal.science/hal-00623280
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    References listed on IDEAS

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    1. Arnaud Chéron & Jean-Olivier Hairault & François Langot, 2013. "Life-Cycle Equilibrium Unemployment," Journal of Labor Economics, University of Chicago Press, vol. 31(4), pages 843-882.
    2. Etienne Lalé, 2018. "Turbulence and the employment experience of older workers," Quantitative Economics, Econometric Society, vol. 9(2), pages 735-784, July.

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