IDEAS home Printed from https://ideas.repec.org/a/kap/decono/v162y2014i4p415-431.html
   My bibliography  Save this article

How Likely are Employers to Rehire Older Workers After Mandatory Retirement? A Vignette Study Among Managers

Author

Listed:
  • Jaap Oude Mulders
  • Hendrik Dalen
  • Kène Henkens
  • Joop Schippers

Abstract

With a vignette experiment among Dutch managers we examine employers’ considerations in the decision to rehire employees after mandatory retirement. We specifically focus on the effects of the employee’s downward wage flexibility (i.e., the willingness to accept a lower wage) and contract flexibility (i.e., preference for a contract which allows flexible hours or employment). The results show that employers are strongly affected by employees who offer to work for a significantly lower wage, but not by the employees’ preference for a particular labor contract. Employers are overall quite disinclined to rehire employees after mandatory retirement, although large differences exist between employees. Part of these differences can be explained by employers having higher retirement age norms (i.e., the maximum age at which employers consider employees suited for work in their organization). Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • 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.
    • Handle: RePEc:kap:decono:v:162:y:2014:i:4:p:415-431
    DOI: 10.1007/s10645-014-9234-8
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10645-014-9234-8
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10645-014-9234-8?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Susan N. Houseman, 2001. "Why Employers Use Flexible Staffing Arrangements: Evidence from an Establishment Survey," ILR Review, Cornell University, ILR School, vol. 55(1), pages 149-170, October.
    2. 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.
    3. 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.
    4. Gomez, Rafael & Gunderson, Morley & Luchak, Andrew, 2002. "Mandatory retirement: a constraint in transitions to retirement?," LSE Research Online Documents on Economics 18341, London School of Economics and Political Science, LSE Library.
    5. Robert Hutchens & Karen Grace-Martin, 2006. "Employer Willingness to Permit Phased Retirement: Why are Some More Willing Than others?," ILR Review, Cornell University, ILR School, vol. 59(4), pages 525-546, July.
    6. Hendrik Dalen & Kène Henkens, 2013. "Dilemmas of Downsizing During the Great Recession: Crisis Strategies of European Employers," De Economist, Springer, vol. 161(3), pages 307-329, September.
    7. 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.
    8. Marcello Pagnini & Paola Rossi & Valerio Vacca, 2017. "Introduction," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 46(3), pages 409-410, November.
    9. Tunga Kantarci & Arthur Soest, 2008. "Gradual Retirement: Preferences and Limitations," De Economist, Springer, vol. 156(2), pages 113-144, June.
    10. Lazear, Edward P, 1979. "Why Is There Mandatory Retirement?," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1261-1284, December.
    11. Hendrik P. Van Dalen & Kène Henkens & Joop Schippers, 2010. "Productivity of Older Workers: Perceptions of Employers and Employees," Population and Development Review, The Population Council, Inc., vol. 36(2), pages 309-330, June.
    12. Kevin F. Hallock, 2009. "Job Loss and the Fraying of the Implicit Employment Contract," Journal of Economic Perspectives, American Economic Association, vol. 23(4), pages 69-93, Fall.
    13. 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.
    14. van Beek, Krijn W. H. & Koopmans, Carl C. & van Praag, Bernard M. S., 1997. "Shopping at the labour market: A real tale of fiction," European Economic Review, Elsevier, vol. 41(2), pages 295-317, February.
    15. 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.
    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. Caliendo, Marco & Cobb-Clark, Deborah A. & Pfeifer, Harald & Uhlendorff, Arne & Wehner, Caroline, 2024. "Managers’ risk preferences and firm training investments," European Economic Review, Elsevier, vol. 161(C).
    2. Derek Messacar & Petr Kocourek, 2019. "Pathways to Retirement, Well-Being, and Mandatory Retirement Rules: Evidence from Canadian Reforms," Journal of Labor Research, Springer, vol. 40(3), pages 249-275, September.
    3. Chee-Tao Chang & Xin-Jie Lim & Premaa Supramaniam & Chii-Chii Chew & Lay-Ming Ding & Philip Rajan, 2022. "Perceived Gap of Age-Friendliness among Community-Dwelling Older Adults: Findings from Malaysia, a Middle-Income Country," IJERPH, MDPI, vol. 19(12), pages 1-14, June.
    4. Martin Lakomý, 2023. "Effects of digital skills and other individual factors on retirement decision-making and their gender differences," European Journal of Ageing, Springer, vol. 20(1), pages 1-12, December.
    5. Zitikytė Kristina, 2019. "To Work or not to Work: Factors Affecting Bridge Employment Beyond Retirement, Case of Lithuania," Ekonomika (Economics), Sciendo, vol. 98(2), pages 33-54, December.
    6. Ellen Dingemans & Kène Henkens & Hanna van Solinge, 2017. "Working retirees in Europe: individual and societal determinants," Work, Employment & Society, British Sociological Association, vol. 31(6), pages 972-991, December.

    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. van Dalen, H.P. & Henkens, K., 2015. "Why Demotion of Older Workers is a No-Go Area for Managers," Other publications TiSEM cef69d5e-bcc2-4082-b9fa-0, Tilburg University, School of Economics and Management.
    2. Frank Erp & Niels Vermeer & Daniel Vuuren, 2014. "Non-financial Determinants of Retirement: A Literature Review," De Economist, Springer, vol. 162(2), pages 167-191, June.
    3. 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.
    4. Anja Deelen & Marloes de Graaf-Zijl & Wiljan van den Berge, 2018. "Labour market effects of job displacement for prime-age and older workers," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-30, December.
    5. 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.
    6. Andrea Albanese & Bart Cockx & Yannick Thuy, 2020. "Working time reductions at the end of the career: Do they prolong the time spent in employment?," Empirical Economics, Springer, vol. 59(1), pages 99-141, July.
    7. Maciej Lis, 2017. "Productivity based selection to retirement: Evidence from EU-SILC," IBS Working Papers 02/2017, Instytut Badan Strukturalnych.
    8. 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.
    9. 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.
    10. Andrea Principi & Jürgen Bauknecht & Mirko Di Rosa & Marco Socci, 2020. "Employees’ Longer Working Lives in Europe: Drivers and Barriers in Companies," IJERPH, MDPI, vol. 17(5), pages 1-18, March.
    11. Daniel Vuuren, 2014. "Flexible Retirement," Journal of Economic Surveys, Wiley Blackwell, vol. 28(3), pages 573-593, July.
    12. Vigtel, Trond Christian, 2018. "The retirement age and the hiring of senior workers," Labour Economics, Elsevier, vol. 51(C), pages 247-270.
    13. Pekka Ilmakunnas & Mika Maliranta, 2016. "How does the age structure of worker flows affect firm performance?," Journal of Productivity Analysis, Springer, vol. 46(1), pages 43-62, August.
    14. Stephan Humpert, 2012. "Age and Gender Differences in Job Opportunities," Working Paper Series in Economics 235, University of Lüneburg, Institute of Economics.
    15. Anja Deelen & Marloes de Graaf-Zijl & Wiljan van den Berge, 2018. "Labour market effects of job displacement for prime-age and older workers," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-30, December.
    16. Pål Børing, 2021. "The Relationship Between Firm Productivity, Wage Level and Employees’ Age: A Sectoral Perspective," De Economist, Springer, vol. 169(3), pages 367-404, August.
    17. Hendrik Dalen & Kène Henkens, 2013. "Dilemmas of Downsizing During the Great Recession: Crisis Strategies of European Employers," De Economist, Springer, vol. 161(3), pages 307-329, September.
    18. van Dalen, H.P. & Henkens, K. & Koedijk, C.G. & Slager, A.M.H., 2010. "Decision Making in the Pension Fund Board Room : An Experiment with Dutch Pension Fund Trustees," Discussion Paper 2010-18, Tilburg University, Center for Economic Research.
    19. 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).
    20. Keith A. Bender & John S. Heywood, 2017. "Educational mismatch and retirement," Education Economics, Taylor & Francis Journals, vol. 25(4), pages 347-365, July.

    More about this item

    Keywords

    Bridge employment; Employers; Mandatory retirement ; Older workers; D22; J23; J26;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • 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

    Statistics

    Access and download statistics

    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:kap:decono:v:162:y:2014:i:4:p:415-431. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.