EUROPEAN PAPERS ON THE NEW WELFARE

Why and How to prolong working life: a labour market perspective

Abstract
Using the Italian case as a learning example, this short note will discuss the issues raised by the goal of working life prolongment. Firstly, it will be argued that such a goal is of paramount relevance vis-à-vis the increase in life expectancy as a way-out from the apparent trade-off between financial sustainability and social adequacy of pensions systems. The difficulties of fulfilling such a goal, taking account of the interactions between demand and supply factors and of the inheritance of past rules and habits, will then be discussed with reference to the Italian case.
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