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The determinants of hiring older workers in Britain revisited: an analysis using WERS 2004

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  • Michael P. Kidd
  • Renuka Metcalfe
  • Peter J. Sloane

Abstract

This article reexamines the role of specific human capital and back loading of compensation as deterrents to hiring older workers. We utilize the framework initially suggested by Hutchens (1986) and more recently implemented by Daniel and Heywood (2007). This approach identifies the extent to which firms hire older workers at a rate less than full replacement would imply. Using the 2004 British Workplace Employment Relations Survey, we examine whether a more favourable climate including a much tighter UK labour market combined with the abandonment of defined benefit pension schemes has increased the tendency to hire older workers. We also examine the impact of private health insurance.

Suggested Citation

  • 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.
  • Handle: RePEc:taf:applec:44:y:2012:i:4:p:527-536
    DOI: 10.1080/00036846.2010.508734
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    References listed on IDEAS

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    1. Riach, Peter A. & Rich, Judy, 2006. "An Experimental Investigation of Age Discrimination in the French Labour Market," IZA Discussion Papers 2522, Institute for the Study of Labor (IZA).
    2. Campbell, Nigel, 1999. "The decline of employment among older people in Britain," LSE Research Online Documents on Economics 51401, London School of Economics and Political Science, LSE Library.
    3. Peter A. Riach & Judith Rich, 2010. "An Experimental Investigation of Age Discrimination in the English Labor Market," Annals of Economics and Statistics, GENES, issue 99-100, pages 169-185.
    4. Campbell, Nigel, 1999. "The decline of employment among older people in Britain," LSE Research Online Documents on Economics 6501, London School of Economics and Political Science, LSE Library.
    5. Nigel Campbell, 1999. "The Decline of Employment Among Older People in Britain," CASE Papers 019, Centre for Analysis of Social Exclusion, LSE.
    6. Riach, Peter A. & Rich, Judy, 2007. "An Experimental Investigation of Age Discrimination in the Spanish Labour Market," IZA Discussion Papers 2654, Institute for the Study of Labor (IZA).
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    Cited by:

    1. 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.

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