"Does A Higher Retirement Age Reduce Youth Employment?"

In this paper published in Economic Policy, Marco Bertoni and Giorgio Brunello from the Department of Economics and Management of the University of Padova, evaluate the impact of a 2011 Italian reform, implemented during a recession, on youth and prime age employment. For any 1,000 local senior workers locked into employment by the reform, local youth and prime age employment declined by 273 (-0.86%) and 199 (-0.12%) workers, and senior employment increased by 833 (+2.70%) individuals. The estimated reduction in youth employment is broadly similar to the one induced by earlier reforms, implemented when the economy was growing. An important part of the total employment change induced by the 2011 reform is due to higher firm turnover.

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