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Mandatory Retirement Rules and the Retirement Decisions of University Professors in Canada

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  • Worswick, Christopher
  • Warman, Casey

Abstract

We examine the impact of mandatory retirement on the retirement decisions of professors in Canada using administrative data. Estimation of a discrete time hazard model indicates that faculty members at universities with mandatory retirement at age 65 have exit rates at age 65 that are around 30 to 38 percentage points higher than those of their counterparts at universities without mandatory retirement. Similar results are found for both men and women; however, the magnitude of this effect is somewhat smaller for women. The estimated survival probabilities indicate that only 22.7 percent of faculty members employed at age 64 at universities without mandatory retirement will continue to be employed at the same university at age 72.

Suggested Citation

  • Worswick, Christopher & Warman, Casey, 2009. "Mandatory Retirement Rules and the Retirement Decisions of University Professors in Canada," Queen's Economics Department Working Papers 273688, Queen's University - Department of Economics.
    • Handle: RePEc:ags:quedwp:273688
    DOI: 10.22004/ag.econ.273688
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    References listed on IDEAS

    as
    1. M. Shannon & D. Grierson, 2004. "Mandatory retirement and older worker employment," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 37(3), pages 528-551, August.
    2. Christopher Worswick & Frances Woolley & Casey Warman, 2006. "The Evolution Of Male-female Wages Differentials In Canadian Universities: 1970-2001," Working Paper 1099, Economics Department, Queen's University.
    3. M. Shannon & D. Grierson, 2004. "Mandatory retirement and older worker employment," Canadian Journal of Economics, Canadian Economics Association, vol. 37(3), pages 528-551, August.
    4. Casey Warman & Frances Woolley & Christopher Worswick, 2010. "The evolution of male-female earnings differentials in Canadian universities,1970-2001," Canadian Journal of Economics, Canadian Economics Association, vol. 43(1), pages 347-372, February.
    5. Thomas Flanagan, 1985. "Policy-making by Exegesis: The Abolition of 'Mandatory Retirement' in Manitoba," Canadian Public Policy, University of Toronto Press, vol. 11(1), pages 40-53, March.
    6. Orley Ashenfelter & David Card, 2002. "Did the Elimination of Mandatory Retirement Affect Faculty Retirement?," American Economic Review, American Economic Association, vol. 92(4), pages 957-980, September.
    7. Morley Gunderson, 2003. "Age Discrimination in Employment in Canada," Contemporary Economic Policy, Western Economic Association International, vol. 21(3), pages 318-328, July.
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    Cited by:

    1. Todd Morris & Benoit Dostie, 2023. "Graying and staying on the job: The welfare implications of employment protection for older workers," Cahiers de recherche / Working Papers 15, Institut sur la retraite et l'épargne / Retirement and Savings Institute.
    2. Allgood, Sam, 2020. "Age discrimination and academic labor markets," Journal of Economic Behavior & Organization, Elsevier, vol. 169(C), pages 70-78.
    3. Frances Woolley, 2018. "The political economy of university education in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 51(4), pages 1061-1087, November.
    4. Anikó Bíró & Réka Branyiczki & Péter Elek, 2021. "The Effect of Involuntary Retirement on Healthcare Use and Health Status," CERS-IE WORKING PAPERS 2122, Institute of Economics, Centre for Economic and Regional Studies.
    5. Navid Ghaffarzadegan & Ran Xu, 2018. "Late retirement, early careers, and the aging of U.S. science and engineering professors," PLOS ONE, Public Library of Science, vol. 13(12), pages 1-16, December.
    6. Anikó Bíró & Réka Branyiczki & Péter Elek, 2022. "The effect of involuntary retirement on healthcare use," Health Economics, John Wiley & Sons, Ltd., vol. 31(6), pages 1012-1032, June.

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    More about this item

    Keywords

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    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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