Understanding the Labour Market for Older Workers: A Survey

27 Pages Posted: 2 Mar 2009

See all articles by John S. Heywood

John S. Heywood

University of Wisconsin at Milwaukee

Stanley Siebert

Business School, University of Birmingham; IZA Institute of Labor Economics; Institute of Economic Affairs (IEA)

Abstract

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.

Keywords: mandatory retirement, deferred pay, age discrimination, older workers

JEL Classification: I38, J32, J71

Suggested Citation

Heywood, John S. and Siebert, Stanley, Understanding the Labour Market for Older Workers: A Survey. IZA Discussion Paper No. 4033, Available at SSRN: https://ssrn.com/abstract=1351196 or http://dx.doi.org/10.2139/ssrn.1351196

John S. Heywood (Contact Author)

University of Wisconsin at Milwaukee ( email )

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Stanley Siebert

Business School, University of Birmingham ( email )

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United Kingdom
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IZA Institute of Labor Economics

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Institute of Economic Affairs (IEA) ( email )

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