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The Effect of Age Discrimination Laws on Age-Earnings Profiles of Postsecondary Faculty

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  • Elda Pema

Abstract

This study investigates the impact of the abolition of mandatory retirement on earnings profiles of faculty in postsecondary institutions. The Age Discrimination in Employment Act (ADEA) excluded faculty from the protection of age discrimination laws until January 1, 1994, due to perceived adverse effects of this legislation on the academic labor market. After 1994, research has found that more faculty are remaining employed beyond the age of 70 and more institutions are offering early retirement plans. This study adds to the literature by finding that the policy change has steepened age-earnings profiles for cohorts entering the labor market, suggesting a stronger job attachment, and, potentially, efficiency gains. Copyright International Atlantic Economic Society 2010

Suggested Citation

  • Elda Pema, 2010. "The Effect of Age Discrimination Laws on Age-Earnings Profiles of Postsecondary Faculty," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 38(1), pages 65-80, March.
    • Handle: RePEc:kap:atlecj:v:38:y:2010:i:1:p:65-80
    DOI: 10.1007/s11293-009-9201-y
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    1. Edward P. Lazear, 1983. "Pensions as Severance Pay," NBER Chapters, in: Financial Aspects of the United States Pension System, pages 57-90, National Bureau of Economic Research, Inc.
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    More about this item

    Keywords

    Faculty retirement; Age discrimination in employment act (ADEA); Mandatory retirement; Age-earnings profiles; J30; J71;
    All these keywords.

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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