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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. 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.
    2. Robert M. Hutchens, 1988. "Do Job Opportunities Decline with Age?," ILR Review, Cornell University, ILR School, vol. 42(1), pages 89-99, October.
    3. Lazear, Edward P, 1979. "Why Is There Mandatory Retirement?," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1261-1284, December.
    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. Daniel, Kirsten & Heywood, John S., 2007. "The determinants of hiring older workers: UK evidence," Labour Economics, Elsevier, vol. 14(1), pages 35-51, January.
    6. 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.
    7. Riach, Peter A. & Rich, Judy, 2007. "An Experimental Investigation of Age Discrimination in the Spanish Labour Market," IZA Discussion Papers 2654, Institute of Labor Economics (IZA).
    8. Riach, Peter A. & Rich, Judy, 2006. "An Experimental Investigation of Age Discrimination in the French Labour Market," IZA Discussion Papers 2522, Institute of Labor Economics (IZA).
    9. 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.
    10. Frank A. Scott & Mark C. Berger & John E. Garen, 1995. "Do Health Insurance and Pension Costs Reduce the Job Opportunities of Older Workers?," ILR Review, Cornell University, ILR School, vol. 48(4), pages 775-791, July.
    11. Nigel Campbell, 1999. "The Decline of Employment Among Older People in Britain," CASE Papers 019, Centre for Analysis of Social Exclusion, LSE.
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    Cited by:

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    2. 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.

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