This paper considers the political economy of employment protection and retirement age and analyzes interaction between labor market and the pension system. In the present scenario, young outsiders (unemployed) are the median group in the electorate. These voters choose the degree of employment...

We analyze how precautionary motives affect the decisions of a risk averseagent on saving, labor supply and retirement. In a setting where there is arandom shock which affects agent disutility from work, we show thatuncertainty directly affects retirement age and saving, but leaves laborsupply...