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The retirement age and the hiring of senior workers

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  • Vigtel, Trond Christian

Abstract

This paper examines the effect of decreasing the distance to the minimum legal retirement age on the hiring of senior workers. Using variation brought about by a comprehensive old-age public pension reform in Norway in 2011, I identify a positive effect on the hiring of senior workers. The results suggest that the increase was mainly caused by a positive shift in the demand for “risky” senior workers (workers with prior sick-leave and blue-collar workers). This lends support to the notion that risk-averse firms are more willing to hire senior workers when the minimum legal retirement age is decreased.

Suggested Citation

  • Vigtel, Trond Christian, 2018. "The retirement age and the hiring of senior workers," Labour Economics, Elsevier, vol. 51(C), pages 247-270.
    • Handle: RePEc:eee:labeco:v:51:y:2018:i:c:p:247-270
    DOI: 10.1016/j.labeco.2018.01.004
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    More about this item

    Keywords

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    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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