IDEAS home Printed from https://ideas.repec.org/a/eee/joecag/v9y2017icp71-77.html
   My bibliography  Save this article

Hiring older workers: The case of Portugal

Author

Listed:
  • Garcia, Maria Teresa Medeiros
  • Fontainha, Elsa
  • Passos, José

Abstract

This paper examines the determinants of the age of hiring of older workers in Portugal. The Portuguese case is particularly relevant to study because the level of participation in the labor market for older workers is about six times higher when compared with European countries. The empirical analysis uses Quadros de Pessoal (Tables of Personnel) Portuguese micro database, employer-employee matched files. Specifically, we use data of workers with more than 50years old and hired during the previous 5years, splitting the cross-section sample according to firm size. The tested explanatory variables are related to employee, job and firm characteristics. The results show that some determinants of the age of hiring are similar to those obtained previously for other countries. Additionally, sectors of activity with specific private occupational pensions plans affect the hiring of old workers and there are signs of changes in the hiring behavior in last years, probably associated with recent changes in social security laws. Furthermore, the results are relevant for policy design since they identify the sectors and jobs where opportunities for hiring older workers are higher.

Suggested Citation

  • Garcia, Maria Teresa Medeiros & Fontainha, Elsa & Passos, José, 2017. "Hiring older workers: The case of Portugal," The Journal of the Economics of Ageing, Elsevier, vol. 9(C), pages 71-77.
    • Handle: RePEc:eee:joecag:v:9:y:2017:i:c:p:71-77
    DOI: 10.1016/j.jeoa.2016.08.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S2212828X15300141
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.jeoa.2016.08.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Scott J. Adams & John S. Heywood, 2007. "The Age of Hiring and Deferred Compensation: Evidence from Australia," The Economic Record, The Economic Society of Australia, vol. 83(261), pages 174-190, June.
    2. Wieteke S. Conen & Hendrik P. van Dalen & Kène Henkens, 2012. "Ageing and employers’ perceptions of labour costs and productivity," International Journal of Manpower, Emerald Group Publishing Limited, vol. 33(6), pages 629-647, September.
    3. Heywood, John S. & Siebert, W. Stanley, 2009. "Understanding the Labour Market for Older Workers: A Survey," IZA Discussion Papers 4033, Institute of Labor Economics (IZA).
    4. Carlos Manuel Pereira da Silva & João Paulo Tomé Calado & Maria Teresa Medeiros Garcia, 2004. "The Financial Sustainability of the Portuguese Social Security System," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 29(3), pages 417-439, July.
    5. Wieteke S. Conen & Kène Henkens & Joop Schippers, 2012. "Employers’ attitudes and actions towards the extension of working lives in Europe," International Journal of Manpower, Emerald Group Publishing Limited, vol. 33(6), pages 648-665, September.
    6. Robert M. Hutchens, 1988. "Do Job Opportunities Decline with Age?," ILR Review, Cornell University, ILR School, vol. 42(1), pages 89-99, October.
    7. Lazear, Edward P, 1979. "Why Is There Mandatory Retirement?," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1261-1284, December.
    8. Daniel, Kirsten & Heywood, John S., 2007. "The determinants of hiring older workers: UK evidence," Labour Economics, Elsevier, vol. 14(1), pages 35-51, January.
    9. Hutchens, Robert, 1986. "Delayed Payment Contracts and a Firm's Propensity to Hire Older Workers," Journal of Labor Economics, University of Chicago Press, vol. 4(4), pages 439-457, October.
    10. Luojia Hu, 2003. "The Hiring Decisions and Compensation Structures of Large Firms," ILR Review, Cornell University, ILR School, vol. 56(4), pages 663-681, July.
    11. Randall W. Eberts & Richard A. Hobbie (ed.), 2008. "Older and Out of Work: Jobs and Social Insurance for a Changing Economy," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number oow, November.
    12. John S. Heywood & Lok-Sang Ho & Xiangdong Wei, 1999. "The Determinants of Hiring Older Workers: Evidence from Hong Kong," ILR Review, Cornell University, ILR School, vol. 52(3), pages 444-459, April.
    13. John Heywood & Uwe Jirjahn & Georgi Tsertsvadze, 2011. "Part-time work and the hiring of older workers," Applied Economics, Taylor & Francis Journals, vol. 43(28), pages 4239-4255.
    14. John Heywood & Uwe Jirjahn & Georgi Tsertsvardze, 2010. "Hiring older workers and employing older workers: German evidence," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(2), pages 595-615, March.
    15. Maria Teresa Medeiros Garcia & Emídio Graça Lopes, 2009. "The macroeconomic impact of reforming a PAYG system: The Portuguese case," International Social Security Review, John Wiley & Sons, vol. 62(1), pages 1-23, January.
    16. Filer, Randall K & Petri, Peter A, 1988. "A Job-Characteristics Theory of Retirement," The Review of Economics and Statistics, MIT Press, vol. 70(1), pages 123-129, February.
    17. Michael P. Kidd & Renuka Metcalfe & Peter J. Sloane, 2012. "The determinants of hiring older workers in Britain revisited: an analysis using WERS 2004," Applied Economics, Taylor & Francis Journals, vol. 44(4), pages 527-536, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andrén, Daniela & Mudenda, Lackson Daniel & Pettersson, Nicklas, 2019. "Which firms employ older workers?," Working Papers 2018:14, Örebro University, School of Business.
    2. Silver, Michelle Pannor & Dass, Adrian Rohit & Laporte, Audrey, 2020. "The effect of post-retirement employment on health," The Journal of the Economics of Ageing, Elsevier, vol. 17(C).
    3. Fabian Busch & Robert Fenge & Carsten Ochsen, 2021. "Do Firms Hire More Older Workers? Evidence from Germany," CESifo Working Paper Series 9219, CESifo.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. John S. Heywood & Uwe Jirjahn, 2016. "The hiring and employment of older workers in Germany: a comparative perspective [Die Beschäftigung und Neueinstellung älterer Arbeitnehmer in Deutschland: Eine vergleichende Perspektive]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 49(4), pages 349-366, December.
    2. Pekka Ilmakunnas & Seija Ilmakunnas, 2014. "Age segregation and hiring of older employees: low mobility revisited," International Journal of Manpower, Emerald Group Publishing Limited, vol. 35(8), pages 1090-1115, October.
    3. John S. Heywood & Uwe Jirjahn, 2015. "The German Labor Market for Older Workers in Comparative Perspective," Research Papers in Economics 2015-02, University of Trier, Department of Economics.
    4. Stephan Humpert, 2012. "Age and Gender Differences in Job Opportunities," Working Paper Series in Economics 235, University of Lüneburg, Institute of Economics.
    5. Christian Pfeifer, 2009. "Adjustment of Deferred Compensation Schemes, Fairness Concerns, and Hiring of Older Workers," Working Paper Series in Economics 151, University of Lüneburg, Institute of Economics.
    6. Pfeifer, Christian, 2009. "An Intra-Firm Perspective on Wage Profiles and Employment of Older Workers with Special Reference to Human Capital and Deferred Compensation," Hannover Economic Papers (HEP) dp-413, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    7. Thomas Zwick, 2012. "Consequences of Seniority Wages on the Employment Structure," ILR Review, Cornell University, ILR School, vol. 65(1), pages 108-125, January.
    8. Arjan Heyma & Siemen Werff & Aukje Nauta & Guurtje Sloten, 2014. "What Makes Older Job-Seekers Attractive to Employers?," De Economist, Springer, vol. 162(4), pages 397-414, December.
    9. C. Sofia Machado & Miguel Portela, 2011. "Age and opportunities for promotion," NIPE Working Papers 03/2011, NIPE - Universidade do Minho.
    10. Scott J. Adams & John S. Heywood, 2007. "The Age of Hiring and Deferred Compensation: Evidence from Australia," The Economic Record, The Economic Society of Australia, vol. 83(261), pages 174-190, June.
    11. Daniel Vuuren, 2014. "Flexible Retirement," Journal of Economic Surveys, Wiley Blackwell, vol. 28(3), pages 573-593, July.
    12. Zwick, Thomas, 2011. "Seniority wages and establishment characteristics," Labour Economics, Elsevier, vol. 18(6), pages 853-861.
    13. Heywood, John S. & Siebert, W. Stanley, 2009. "Understanding the Labour Market for Older Workers: A Survey," IZA Discussion Papers 4033, Institute of Labor Economics (IZA).
    14. Andrén, Daniela & Mudenda, Lackson Daniel & Pettersson, Nicklas, 2019. "Which firms employ older workers?," Working Papers 2018:14, Örebro University, School of Business.
    15. Pekka Ilmakunnas & Seija Ilmakunnas, 2011. "Hiring older employees: Do incentives of early retirement channels matter?," Working Papers 268, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    16. Paul Hek & Daniel Vuuren, 2011. "Are older workers overpaid? A literature review," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 18(4), pages 436-460, August.
    17. Michael P. Kidd & Renuka Metcalfe & Peter J. Sloane, 2012. "The determinants of hiring older workers in Britain revisited: an analysis using WERS 2004," Applied Economics, Taylor & Francis Journals, vol. 44(4), pages 527-536, February.
    18. Daniel, Kirsten & Heywood, John S., 2007. "The determinants of hiring older workers: UK evidence," Labour Economics, Elsevier, vol. 14(1), pages 35-51, January.
    19. Fabian Busch & Robert Fenge & Carsten Ochsen, 2021. "Do Firms Hire More Older Workers? Evidence from Germany," CESifo Working Paper Series 9219, CESifo.
    20. Jaap Oude Mulders & Hendrik Dalen & Kène Henkens & Joop Schippers, 2014. "How Likely are Employers to Rehire Older Workers After Mandatory Retirement? A Vignette Study Among Managers," De Economist, Springer, vol. 162(4), pages 415-431, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joecag:v:9:y:2017:i:c:p:71-77. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/the-journal-of-the-economics-of-ageing .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.