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Understanding the Labour Market for Older Workers: A Survey

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Author Info

  • Heywood, John S.

    ()
    (University of Wisconsin, Milwaukee)

  • Siebert, W. Stanley

    ()
    (University of Birmingham)

Abstract

The paper asks why retirement can be so abrupt in countries such as France (½% of the workforce over 65), yet staged in Japan (8% over 65). We find part of the answer in tax laws that prevent people working and receiving a pension, and make little allowance for fair pension increases if retirement is deferred. While these laws have begun to change, we find another part of the answer in employment protection laws. These laws coupled with inflexible collectively agreed wages make employers choosy about hiring the old. The advent of "age discrimination" law reinforces employment protection and may well reduce older workers' hiring opportunities especially where wages are rigid.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4033.

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Length: 27 pages
Date of creation: Feb 2009
Date of revision:
Handle: RePEc:iza:izadps:dp4033

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Related research

Keywords: age discrimination; older workers; deferred pay; mandatory retirement;

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Cited by:
  1. Ilmakunnas, Pekka & Ilmakunnas, Seija, 2011. "Hiring older employees: Do incentives of early retirement channels matter?," MPRA Paper 30885, University Library of Munich, Germany.
  2. Ilmakunnas, Pekka & Ilmakunnas, Seija, 2012. "Age segregation and hiring of older employees: low mobility revisited," MPRA Paper 37655, University Library of Munich, Germany.
  3. Stephan Humpert, 2012. "Age and Gender Differences in Job Opportunities," Working Paper Series in Economics 235, University of Lüneburg, Institute of Economics.

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