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Passed Over for Promotion Because of Age: An Empirical Analysis of the Consequences

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  • SCOTT J. ADAMS

Abstract

I test whether older individuals who report that their firms favor younger workers in promotion decisions are harmed by this often-cited discriminatory practice. Using the Health and Retirement Study, I determine whether such workers are more likely to experience lower wage growth, to separate from their employer, or to retire early, in comparison with workers with similar demographic and job characteristics. The evidence is consistent with lower wage growth and a greater likelihood of early retirement. Much of the effect, however, is likely to stem from a high correlation between delayed-payment contracts and promotion practices.

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Bibliographic Info

Article provided by Transaction Publishers in its journal Journal of Labor Research.

Volume (Year): 23 (2002)
Issue (Month): 3 (July)
Pages: 447-461

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Handle: RePEc:tra:jlabre:v:23:y:2002:i:3:p:447-461

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Web page: http://transactionpub.metapress.com/link.asp?target=journal&id=110581

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Cited by:
  1. Michael Beckmann, 2007. "Age-Biased Technological and Organizational Change: Firm-Level Evidence and Management Implications," Working papers 2007/05, Faculty of Business and Economics - University of Basel.
  2. Daniel, Kirsten & Heywood, John S., 2007. "The determinants of hiring older workers: UK evidence," Labour Economics, Elsevier, vol. 14(1), pages 35-51, January.
  3. Neumark, David & Song, Joanne, 2013. "Do stronger age discrimination laws make Social Security reforms more effective?," Journal of Public Economics, Elsevier, vol. 108(C), pages 1-16.
  4. David Neumark & Joanne Song, 2011. "Do Stronger Age Discrimination Laws Make Social Security Reforms More Effective?," NBER Working Papers 17467, National Bureau of Economic Research, Inc.
  5. Machado, C. Sofia & Portela, Miguel, 2013. "Age and Opportunities for Promotion," IZA Discussion Papers 7784, Institute for the Study of Labor (IZA).
  6. David Neumark, 2008. "The Age Discrimination in Employment Act and the Challenge of Population Aging," NBER Working Papers 14317, National Bureau of Economic Research, Inc.

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