Workforce Aging, Pension Reforms, and Firm Outcomes

Abstract

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Working Horizon and Labour Supply: The Effect of Raising the Full Retirement Age on Middle-Aged Individuals

“…Thus, individuals have strong incentives to stop working as soon as they have reached the full retirement age. Our evidence (see Section 3.3), as well as other existing evidence for Italy (see among others Battistin et al, 2009;Ciani, 2016;Carta et al, 2020), indeed shows that about 70% of Italian workers retire as soon as they reach the first eligibility for full benefits. Throughout the paper we define the age at first eligibility for full retirement as Minimum Retirement Age (MRA): this is the minimum between the age at which the individual becomes eligibile for retirement under the old age scheme and the age reached by the individual to satisfy the seniority pension scheme requirements.…”

In medio stat victus: Labor Demand Effects of an Increase in the Retirement Age

“…These characteristics of the reform explain why it attracted much interest from researchers. In addition to Boeri et al (2016), Bertoni and Brunello (2021), Carta et al (2020), and Bovini and Paradisi (2018) have been using this reform as a case study. Bertoni and Brunello (2021) use labor force survey data at the province level to test whether the increase in the retirement age led to a fall in youth employment.…”

“…They draw on Census data to instrument the old-age population, and find that older workers crowd out youth employment. Carta et al (2020) use matched data from a Bank of Italy survey of large firms, balance sheet data and data from the social security administration. They focus only on firms with more than 50 employees and estimate themselves the pension eligibility based on information on the age of workers and on the length of their contribution record (not including additional years purchased by paying contributions for the schooling years).…”

The Italian Public Sector Workforce: Recent Evolution in the Light of the Rules on Turnover

“…18 Productivity reductions at older age will vary depending on the type of job: they are generally higher when problem solving, learning and speed are important, whereas older individuals maintain a relatively high productivity level in tasks where experience and verbal and social abilities matter more (Deming, 2017). 19 The most recent literature found mixed results about the relation between a firm's workforce age composition and its overall productivity (Mahlberg et al, 2013;Carta et al, 2020), while macro-level evidence agrees on the existence of an aggregate negative impact of population ageing on productivity (Feyrer, 2007;Aiyar and Ebeke, 2016;Daniele et al, 2019).…”