Will Postponing Retirement Age Affect Youth Employment? A Perspective Differentiating Workforce Education Levels

5月 22, 2017

Zhang Zhiyuan (张志远) and Zhang Minghong (张铭洪)

Postdoctoral Scientiﬁc Research Station, Xiamen International Bank, Xiamen, China

School of Economics, Xiamen University, Xiamen, China

Abstract: This paper calculates the employment substitutability between young

workforce and ageing workforce using Welch index. The result shows that the employment

substitutability between these two groups of people is rather poor. Furthermore, the result

of our dynamic panel regression analysis indicates that an increase in the share of ageing

workforce is conducive to youth employment. Such a positive effect mainly derives from

more educated ageing workforce, while the increase of less educated ageing workforce has

little effect on youth employment.

Keywords: postponement of retirement, employment substitutability, employment rate

JEL Classiﬁcation Code: J26