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Passed Over for Promotion Because of Age: An Empirical Analysis of the Consequences

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  • SCOTT J. ADAMS

Abstract

I test whether older individuals who report that their firms favor younger workers in promotion decisions are harmed by this often-cited discriminatory practice. Using the Health and Retirement Study, I determine whether such workers are more likely to experience lower wage growth, to separate from their employer, or to retire early, in comparison with workers with similar demographic and job characteristics. The evidence is consistent with lower wage growth and a greater likelihood of early retirement. Much of the effect, however, is likely to stem from a high correlation between delayed-payment contracts and promotion practices.

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  • Scott J. Adams, 2002. "Passed Over for Promotion Because of Age: An Empirical Analysis of the Consequences," Journal of Labor Research, Transaction Publishers, vol. 23(3), pages 447-461, July.
  • Handle: RePEc:tra:jlabre:v:23:y:2002:i:3:p:447-461
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    Citations

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    Cited by:

    1. David Neumark, 2008. "The Age Discrimination in Employment Act and the Challenge of Population Aging," NBER Working Papers 14317, National Bureau of Economic Research, Inc.
    2. David Neumark & Joanne Song, 2012. "Barriers to Later Retirement: Increases in the Full Retirement Age, Age Discrimination, and the Physical Challenges of Work," Working Papers wp265, University of Michigan, Michigan Retirement Research Center.
    3. C. Sofia Machado & Miguel Portela, 2011. "Age and opportunities for promotion," NIPE Working Papers 03/2011, NIPE - Universidade do Minho.
    4. David Neumark & Ian Burn & Patrick Button, 2015. "Is It Harder for Older Workers to Find Jobs? New and Improved Evidence from a Field Experiment," NBER Working Papers 21669, National Bureau of Economic Research, Inc.
    5. Lorenzo Burlon & Montserrat Vilalta-Bufí, 2016. "A new look at technical progress and early retirement," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-39, December.
    6. Beckmann, Michael & Schauenberg, Bernd, 2007. "Age-Biased Technological and Organizational Change: Firm-Level Evidence and Management Implications," Working papers 2007/05, Faculty of Business and Economics - University of Basel.
    7. Neumark, David & Song, Joanne, 2013. "Do stronger age discrimination laws make Social Security reforms more effective?," Journal of Public Economics, Elsevier, vol. 108(C), pages 1-16.
    8. Nishimura, Yoshinori, 2016. "Did Government Intervention on Firm’s Employment Policies Have an Effect on the Employment of Elderly Workers?," MPRA Paper 73444, University Library of Munich, Germany.
    9. Patrick Button, 2017. "Seniors for Hire? Age Discrimination, "Sex-Plus-Age" Discrimination, and the Effectiveness of Age Discrimination Laws," Working Papers 1715, Tulane University, Department of Economics.
    10. Heywood, John S. & Siebert, W. Stanley, 2009. "Understanding the Labour Market for Older Workers: A Survey," IZA Discussion Papers 4033, Institute for the Study of Labor (IZA).
    11. Daniel, Kirsten & Heywood, John S., 2007. "The determinants of hiring older workers: UK evidence," Labour Economics, Elsevier, vol. 14(1), pages 35-51, January.

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