Thursday, 8 November 2018

Retirement rigidities and the gap between effective and desired labour supply by older workers

Serena Trucchi (Ca’ Foscari University of Venice, Italy) and Elsa Fornero and Mariacristina Rossi (University of Turin, Italy) published in IZA Journal of Labor Policy Volume 7 Article 10 (2018)

Abstract

Our paper analyses the observed and desired labour supply by older workers and (recent) retirees in a country (Italy) with limited opportunities for flexible work schedules.

To this purpose, we use a dataset drawn from the Bank of Italy’s Survey on Household Income and Wealth providing information on desired and actual working hours. Our empirical analysis documents the gap between older individuals’ desired and observed labour supply at both the extensive and the intensive margins and traces it back to gender, education and family composition.

The paper provides useful insights into the potential usefulness of policies such as gradual retirement and part-time work in increasing older workers’ employment.

JEL Classification: J26, J14

Full text (PDF 19pp)


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