Previous volumes of the International Social Security project at the NBER have shown convincingly that the incentives provided by pension schemes provisions have had a strong negative impact on labor force participation at older ages (Gruber and Wise 1999, 2004). This chapter tries to take this claim seriously and assess whether we have any empirical evidence of links between early retirement and youth unemployment. Most economists would today dismiss the idea immediately as another version of the naive “lump- of- labor fallacy.”