This paper shows that the quot;lump of laborquot; assumption fails in Italy. The direct relationship between the unemployment rate of the young and the labor force participation of the old is pro-cyclical, i.e. a higher labor force participation of the old is related to a lower unemployment rate...

This paper uses administrative data to study the retirement decisions of Italian private-sector non-agricultural employees during the period 1977-97. Our analysis tries to assess the importance of the financial incentives built into the social security system. The basic idea is very simple: at...

Even as life expectancy in many countries has continued to increase, social security and similar government programs can provide strong incentives for workers to leave the labor force when they reach the age of eligibility for benefits. Disability insurance programs can also play a significant...