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Old-age unemployment and labour supply: an application to Belgium

Author

Listed:
  • Octave De Brouwer
  • Ilan Tojerow
Abstract
Over the last two decades, social security reforms in several European countries have turned early retirement routes for older workers increasingly difficult. The size of the effects of these reforms on labour supply and social security transfers, and how these effects interact with workers’ characteristics have yet to be measured. This article sheds light on this issue by exploring the consequences of postponing access to an old-age unemployment programme—from age 58 to 60—in Belgium. The programme provides laid-off workers with a combination of unemployment benefits and a monthly supplement paid by the employer until the full retirement age. Exploiting register data on the universe of workers and using a difference-in-difference identification strategy, the authors find that UCS eligibility negatively affects employment participation but also mitigates older workers’ participation in other social security programmes.

Suggested Citation

  • Octave De Brouwer & Ilan Tojerow, 2024. "Old-age unemployment and labour supply: an application to Belgium," ULB Institutional Repository 2013/370542, ULB -- Universite Libre de Bruxelles.
    • Handle: RePEc:ulb:ulbeco:2013/370542
    Note: SCOPUS: ar.j
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    References listed on IDEAS

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    Cited by:

    1. 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).

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    More about this item

    Keywords

    Early retirement; Older workers; Social security; Unemployment;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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