_________________________________________________________________

  E M P L O Y E E   B E N E F I T S ,   C O M P E N S A T I O N
                    &   P E N S I O N   L A W
                  Vol. 3,  No. 13: July 18, 2002
_________________________________________________________________

Publisher:     LSN Employment, Labor, Compensation & Pension Journals
               a division of
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               and Social Science Research Network (SSRN)

Editor:        PAMELA PERUN
               Urban Institute
               Mailto:pamela@planetnow.com

Copyright:     SSEP, Inc. 2002. All rights reserved.

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                      Topic of This Issue:
                      International Aging
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T A B L E   of   C O N T E N T S
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NEW and FORTHCOMING ARTICLES

"Early Retirement Programs and Wage Restraint: Empirical Evidence
 from France"
      Industrial & Labor Relations Review, Vol. 55, No. 3, April
      2002
     DAVID M. GRAY
        University of Ottawa
        Department of Economics

WORKING PAPERS

"Benefit Entitlement and the Labor Market: Evidence from a
 Large-Scale Policy Change"
     RAFAEL LALIVE
        University of Zurich
        Institute for Empirical Economic Research
        Institute for the Study of Labor (IZA)
        CESifo (Center for Economic Studies and Ifo
        Institute for Economic Research)
     JOSEF ZWEIMUELLER
        University of Zurich
        Institute for Empirical Economic Research
        CESifo (Center for Economic Studies and Ifo
        Institute for Economic Research)
        Centre for Economic Policy Research (CEPR)
        Institute for the Study of Labor (IZA)


"The Costs of Early Retirement in the OECD"
     TRYGGVI THOR HERBERTSSON
        University of Iceland
        Institute of Economic Studies
     J. MICHAEL ORSZAG
        University of London, Birkbeck College
        Department of Economics and Finance


"Elderly in the Labor Market"
     ANA AMTLIA CAMARANO MELLO MOREIRA
        Institute of Applied Economic Research (IPEA)
        Directory of Macroeconomic Policy & Studies (DEMAC)


"Health and Work of the Elderly"
     MAARTEN LINDEBOOM
        Vrije Universiteit Amsterdam (Free University)
        Department of Economics
        Tinbergen Institute Amsterdam
        Institute for the Study of Labor (IZA)
     MARCEL KERKHOFS
        OSA Institute for Labour Studies, Tilburg
        University


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EDITORIAL POLICIES
 To provide the broadest coverage of research in Employee
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 scholarly discourse.


N E W   and   F O R T H C O M I N G   Articles
_________________________________________________________________

"Early Retirement Programs and Wage Restraint: Empirical Evidence
 from France"
      Industrial & Labor Relations Review, Vol. 55, No. 3, April
      2002

      BY:  DAVID M. GRAY
              University of Ottawa
              Department of Economics

 Contact:  DAVID M. GRAY
   Email:  Mailto:Dmgray@uottawa.ca
  Postal:  University of Ottawa
           Department of Economics
           200 Wilbrod Street
           Ottawa,  Ontario K1N 6N5  CANADA

ABSTRACT:
 Labor-force withdrawal programs such as government-subsidized
 early retirement programs are an important unemployment policy
 instrument in some European countries. Most economists, however,
 have expressed doubts concerning these programs' efficacy in
 combating unemployment, in part because they cause a reduction
 in effective labor supply, which in turn places undue upward
 pressure on the wage level. This paper analyzes the wage
 pressure effects of the early retirement program in France in
 1984-86. In contrast to most existing studies of such programs,
 which have analyzed aggregate labor markets based on the country
 as the unit of observation, the empirical analysis in this paper
 employs a partial equilibrium framework and uses less
 aggregated, sectoral data. The findings suggest, consistent with
 results from most of the aggregate labor market studies, that
 the early retirement program had a slight positive impact on
 wage pressure.

 Keywords: early retirement programs, wage pressure, France,
 unemployment policy


JEL Classification: J23, J26, J31, J51
______________________________

W O R K I N G   P A P E R   Abstracts
_________________________________________________________________

"Benefit Entitlement and the Labor Market: Evidence from a
 Large-Scale Policy Change"

      BY:  RAFAEL LALIVE
              University of Zurich
              Institute for Empirical Economic Research
              Institute for the Study of Labor (IZA)
              CESifo (Center for Economic Studies and Ifo
              Institute for Economic Research)
           JOSEF ZWEIMUELLER
              University of Zurich
              Institute for Empirical Economic Research
              CESifo (Center for Economic Studies and Ifo
              Institute for Economic Research)
              Centre for Economic Policy Research (CEPR)
              Institute for the Study of Labor (IZA)

Document:  Available from the SSRN Electronic Paper Collection:
           http://papers.ssrn.com/paper.taf?abstract_id=304440

           Other Electronic Document Delivery:
           http://www.CESifo.de
           SSRN only offers technical support for papers
           downloaded from the SSRN Electronic Paper Collection
           location. When URLs wrap, you must copy and paste
           them into your browser eliminating all spaces.

Paper ID:  CESifo Working Paper Series No. 694; IZA Discussion
           Paper No. 444
    Date:  April 2002

 Contact:  JOSEF ZWEIMUELLER
   Email:  Mailto:zweim@iew.unizh.ch
  Postal:  University of Zurich
           Institute for Empirical Economic Research
           Bluemlisalpstrasse 10
           CH-8006 Zurich,    SWITZERLAND
   Phone:  +41 1 634 3724
     Fax:  +41 1 634 4907
 Co-Auth:  RAFAEL LALIVE
   Email:  Mailto:rlalive@iew.unizh.ch
  Postal:  University of Zurich
           Institute for Empirical Economic Research
           Bluemlisalpstrasse 10
           CH-8006 Zurich,    SWITZERLAND

Paper Requests:
 Hardcopies For Libraries: contact Gertraud Porak, Postal: CESifo
 Inc., Poschinger Str. 5, 81679 Munich, Germany.
 Mailto:porak@CESifo.de

ABSTRACT:
 This paper analyzes the impact of the Austrian Regional Extended
 Benefit Program (REBP) on the labor market outcomes for elderly
 workers in Austria. The REBP extended entitlement to regular
 unemployment benefits from 30 weeks to a maximum of 209 weeks
 for elderly individuals in certain regions. This policy change
 created a large-scale quasi-experimental situation from which a
 lot can be learned about the impact of unemployment insurance
 rules on the dynamics of employment, unemployment, and wages. We
 find that the REBP led to a tremendous increase in unemployment,
 which was due to both an increase in the inflow to and the
 outflow from unemployment. The REBP also induced a strong
 increase in early retirement and in many cases, particular for
 steel workers, entering unemployment meant withdrawal from the
 labor force. Finally, we show that there were also
 non-negligible effects of extended benefits on the level and the
 distribution of wages.

 Keywords: Quasi-experiments, Maximum Benefit Duration,
 Unemployment Inflow, Duration of Unemployment, Early Retirement,
 Earnings, Inequality


JEL Classification: H55, H23, E62
______________________________

"The Costs of Early Retirement in the OECD"

      BY:  TRYGGVI THOR HERBERTSSON
              University of Iceland
              Institute of Economic Studies
           J. MICHAEL ORSZAG
              University of London, Birkbeck College
              Department of Economics and Finance

Document:  Available from the SSRN Electronic Paper Collection:
           http://papers.ssrn.com/paper.taf?abstract_id=273370

Paper ID:  Institute of Economic Studies Working Paper No. W01:02
    Date:  May 2001

 Contact:  TRYGGVI THOR HERBERTSSON
   Email:  Mailto:tthh@hi.is
  Postal:  University of Iceland
           Institute of Economic Studies
           Aragata 14
           IS-101 Reykjavik,    ICELAND
   Phone:  +354 525 4535
     Fax:  +354 525 4096
 Co-Auth:  J. MICHAEL ORSZAG
   Email:  Mailto:morszag@economics.bbk.ac.uk
  Postal:  University of London, Birkbeck College
           Department of Economics and Finance
           7-15 Gresse Street
           London WIT 1LL,    UNITED KINGDOM

ABSTRACT:
 Despite substantial increases in longevity, the age of
 retirement in the industrialized countries has steadily fallen
 throughout most of the 20th century. In 13 OECD countries, the
 employment-population ratio of 55-64-year-old males fell by an
 average of more than 12 percentage points between 1979 and 1998.
 Similarly, labor force participation rates for those 65 and
 above have fallen significantly. The economic cost of the low
 labor market participation, in terms of lost output, benefit
 payments, and lower tax base is substantial. However, part of
 the cost of low labor market participation is cyclical or
 structural and, hence, separate from the costs of early
 retirement. This paper develops a simple framework to assess the
 specific costs of early retirement and applies it using data
 from the OECD countries.

 Keywords: Early retirement, labor supply/demand, foregone
 output


JEL Classification: H55, J14, J21, J26
______________________________

"Elderly in the Labor Market"

      BY:  ANA AMTLIA CAMARANO MELLO MOREIRA
              Institute of Applied Economic Research (IPEA)
              Directory of Macroeconomic Policy & Studies (DEMAC)

Document:  Available from the SSRN Electronic Paper Collection:
           http://papers.ssrn.com/paper.taf?abstract_id=296963

           Other Electronic Document Delivery:
           http://www.ipea.gov.br/pub/td/td_2001/td_0830.pdf
           SSRN only offers technical support for papers
           downloaded from the SSRN Electronic Paper Collection
           location. When URLs wrap, you must copy and paste
           them into your browser eliminating all spaces.

Paper ID:  IPEA Working Paper No. 830
    Date:  October 2000

 Contact:  ANA AMTLIA CAMARANO MELLO MOREIRA
   Email:  Mailto:aac@ipea.gov.br
  Postal:  Institute of Applied Economic Research (IPEA)
           Directory of Macroeconomic Policy & Studies
           (DEMAC)
           Av. Presidente Antonio Carlos 51
           10 Andar Centro
           Rio de Janeiro RJ 20020-010,    BRAZIL
   Phone:  +55 21 212 1005
     Fax:  +55 21 240 1920

    Note: The downloadable document is written in Portuguese.

ABSTRACT:
 The paper analyzes the participation of Brazilian elderly in the
 labor market from 1977 to 1998. This analysis is different from
 traditional labor market analysis as the main focus is not with
 the pressure that elderly can put on the labor market. The
 objective is to look at their participation as an indicator of
 dependence. Furthermore, the paper also examines the
 contribution that Brazilian elderly brings to familial budget.
 Finally, it calls attention to the fact that the elderly
 population is already affecting the Brazilian labor force.

 Elderly participation in labor force experienced little
 changes through the studied time period. It did not seem
 affected by the large increase in retired population. Among the
 considered variables which can affect that participation, age
 and education showed a great importance; age in a negative way
 and education in a positive one. It is believed that both
 reflect health conditions which seem to be an important
 determinant of elderly labor force supply.

 The participation of Brazilian elderly in labor market is high
 considering international standards. This is related to the high
 participation of retired population. About 50% of male elderly
 and a third of female elderly on the labor market were retired
 in 1998. This proportion increased over the studied time period.
 Earnings from work are important in the elderly income and in
 their families.

 Keywords: elderly, labor market, retirement


JEL Classification: J14
______________________________

"Health and Work of the Elderly"

      BY:  MAARTEN LINDEBOOM
              Vrije Universiteit Amsterdam (Free University)
              Department of Economics
              Tinbergen Institute Amsterdam
              Institute for the Study of Labor (IZA)
           MARCEL KERKHOFS
              OSA Institute for Labour Studies, Tilburg
              University

Document:  Available from the SSRN Electronic Paper Collection:
           http://papers.ssrn.com/paper.taf?abstract_id=304339

           Other Electronic Document Delivery:
           http://www.tinbergen.nl/discussionpapers/02025.pdf
           SSRN only offers technical support for papers
           downloaded from the SSRN Electronic Paper Collection
           location. When URLs wrap, you must copy and paste
           them into your browser eliminating all spaces.

Paper ID:  Tinbergen Institute Working Paper No. TI 02-025/3
    Date:  2002

 Contact:  MAARTEN LINDEBOOM
   Email:  Mailto:mlindeboom@econ.vu.nl
  Postal:  Vrije Universiteit Amsterdam (Free University)
           Department of Economics
           De Boelelaan 1105
           1081 HV Amsterdam,    NETHERLANDS
   Phone:  +31 20 444 6033
     Fax:  +31 20 444 6020
 Co-Auth:  MARCEL KERKHOFS
   Email:  Mailto:m.j.m.kerkhofs@kub.nl
  Postal:  OSA Institute for Labour Studies, Tilburg University
           Postbus 90153
           5000 LE Tilburg,    NETHERLANDS

ABSTRACT:
 This paper aims to exp1ore the interre1ation between hea1th and
 work decisions of e1der1y workers, taking the various ways in
 which hea1th and work can influence each other exp1icitly into
 account. For this, two issues are of re1evance. Se1f-assessed
 health measures are usually at hand in empirical analyses and
 research indicates that these may be affected by endogenous,
 state dependent, reporting behavior. Furthermore, even if an
 objective health measure is used, it is not likely to be
 strictly exogenous to labor market status or labor income.
 Health and labor market variables are correlated because of
 unobserved individual-specific characteristics (e.g.,
 investments in human capital and health capital). Moreover,
 one's labor market status is expected to have a (reverse) causal
 effect on health. A solution to the "Health and Retirement
 Nexus" requires an integrated model for work decisions, health
 production and health reporting mechanisms. We formulate such a
 model and estimate it on a longitudinal dataset of Dutch
 elderly.

 Keywords: Retirement, health, endogeneity, state dependent
 reporting errors