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Understanding the Labour Market for Older Workers: A Survey

  • Heywood, John S.

    ()

    (University of Wisconsin, Milwaukee)

  • Siebert, W. Stanley

    ()

    (University of Birmingham)

The paper asks why retirement can be so abrupt in countries such as France (½% of the workforce over 65), yet staged in Japan (8% over 65). We find part of the answer in tax laws that prevent people working and receiving a pension, and make little allowance for fair pension increases if retirement is deferred. While these laws have begun to change, we find another part of the answer in employment protection laws. These laws coupled with inflexible collectively agreed wages make employers choosy about hiring the old. The advent of "age discrimination" law reinforces employment protection and may well reduce older workers' hiring opportunities especially where wages are rigid.

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File URL: http://ftp.iza.org/dp4033.pdf
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4033.

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Length: 27 pages
Date of creation: Feb 2009
Date of revision:
Handle: RePEc:iza:izadps:dp4033
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