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The retirement age and the hiring of senior workers

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  • Vigtel, Trond Christian

Abstract

This paper examines the effect of decreasing the distance to the minimum legal retirement age on the hiring of senior workers. Using variation brought about by a comprehensive old-age public pension reform in Norway in 2011, I identify a positive effect on the hiring of senior workers. The results suggest that the increase was mainly caused by a positive shift in the demand for “risky” senior workers (workers with prior sick-leave and blue-collar workers). This lends support to the notion that risk-averse firms are more willing to hire senior workers when the minimum legal retirement age is decreased.

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  • Vigtel, Trond Christian, 2018. "The retirement age and the hiring of senior workers," Labour Economics, Elsevier, vol. 51(C), pages 247-270.
    • Handle: RePEc:eee:labeco:v:51:y:2018:i:c:p:247-270
    DOI: 10.1016/j.labeco.2018.01.004
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    3. Kruse, Herman & Myhre, Andreas, 2021. "Early Retirement Provision for Elderly Displaced Workers," MPRA Paper 109431, University Library of Munich, Germany.
    4. Masayuki Okada, 2023. "The optimal earnings test and retirement behavior," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 30(4), pages 1036-1068, August.

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    More about this item

    Keywords

    Retirement; Mobility; Pension reform;
    All these keywords.

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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