Too old to work, too young to retire?
Title: Too old to work, too young to retire?
Citation: Journal of the economics of ageing, 2017, Vol. 9, pp. 14-29
ISSN: 2212-828X; 2212-8298
We study whether employment prospects of old and young workers differ after a plant closure. Using Austrian administrative data and a combination of exact matching and fixed effects, we show that old and young workers face similarly large displacement costs in terms of employment in the long-run, but old workers lose considerably more initially and gain later. Effects on wages of displaced workers are not age-dependent. We interpret these findings in the light of a standard job search model augmented to allow for an absorbing state capturing the option of "early retirement". (C) 2016 Elsevier B.V. All rights reserved.
Available online 7 July 2016
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