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Do State Laws Protecting Older Workers from Discrimination Reduce Age Discrimination in Hiring? Evidence from a Field Experiment

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  • David Neumark
  • Ian Burn
  • Patrick Button
  • Nanneh Chehras

Abstract

We conduct a résumé field experiment in all US states to study how state laws protecting older workers from age discrimination affect age discrimination in hiring for retail sales jobs. We relate the difference in callback rates between old and young applicants to states' variation in age and disability discrimination laws. These laws could boost hiring of older applicants, although they could have the unintended consequence of deterring hiring if they increase termination costs. In our preferred estimates that are weighted to be representative of the workforce, we find evidence that there is less discrimination against older men and women in states where age discrimination law allows larger damages and more limited evidence that there is less discrimination against older women in states where disability discrimination law allows larger damages. Our clearest result is that the laws do not have the unintended consequence of lowering callbacks for older workers.

Suggested Citation

  • David Neumark & Ian Burn & Patrick Button & Nanneh Chehras, 2019. "Do State Laws Protecting Older Workers from Discrimination Reduce Age Discrimination in Hiring? Evidence from a Field Experiment," Journal of Law and Economics, University of Chicago Press, vol. 62(2), pages 373-402.
    • Handle: RePEc:ucp:jlawec:doi:10.1086/704008
    DOI: 10.1086/704008
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    1. Neumark, David & Song, Joanne, 2013. "Do stronger age discrimination laws make Social Security reforms more effective?," Journal of Public Economics, Elsevier, vol. 108(C), pages 1-16.
    2. Patrick Button, 2018. "Expanding Employment Discrimination Protections for Individuals with Disabilities: Evidence from California," ILR Review, Cornell University, ILR School, vol. 71(2), pages 365-393, March.
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    Cited by:

    1. Lippens, Louis & Baert, Stijn & Derous, Eva, 2021. "Loss aversion in taste-based employee discrimination: Evidence from a choice experiment," Economics Letters, Elsevier, vol. 208(C).
    2. Button, Patrick & Walker, Brigham, 2020. "Employment discrimination against Indigenous Peoples in the United States: Evidence from a field experiment," Labour Economics, Elsevier, vol. 65(C).
    3. Melo, Vitor & Sigaud, Liam, 2024. "Right-to-Work Laws and Labor Market Discrimination: Evidence from a Field Experiment," Working Papers 12375, George Mason University, Mercatus Center.
    4. Van Borm, Hannah & Burn, Ian & Baert, Stijn, 2021. "What Does a Job Candidate's Age Signal to Employers?," Labour Economics, Elsevier, vol. 71(C).
    5. Lippens, Louis & Vermeiren, Siel & Baert, Stijn, 2023. "The state of hiring discrimination: A meta-analysis of (almost) all recent correspondence experiments," European Economic Review, Elsevier, vol. 151(C).
    6. Button, Patrick & Khan, Mashfiqur R. & Penn, Mary, 2022. "Do stronger employment discrimination protections decrease reliance on Social Security Disability Insurance? Evidence from the U.S. Social Security reforms," The Journal of the Economics of Ageing, Elsevier, vol. 22(C).
    7. Schaerer, Michael & du Plessis, Christilene & Nguyen, My Hoang Bao & van Aert, Robbie C.M. & Tiokhin, Leo & Lakens, Daniël & Giulia Clemente, Elena & Pfeiffer, Thomas & Dreber, Anna & Johannesson, Mag, 2023. "On the trajectory of discrimination: A meta-analysis and forecasting survey capturing 44 years of field experiments on gender and hiring decisions," Organizational Behavior and Human Decision Processes, Elsevier, vol. 179(C).
    8. Joanne Song McLaughlin, 2020. "Falling Between the Cracks: Discrimination Laws and Older Women," LABOUR, CEIS, vol. 34(2), pages 215-238, June.
    9. Richard J. Hunter & John H. Shannon & Henry J. Amoroso, 2019. "Employment Discrimination Based on Age: Part II: Applying the ADEA in Employment Scenarios: Discrimination, Idle Chatter, or Something Else?," Journal of Public Administration and Governance, Macrothink Institute, vol. 9(1), pages 1-17, March.
    10. Ian Burn & Patrick Button & Luis Felipe Munguia Corella & David Neumark, 2019. "Older Workers Need Not Apply? Ageist Language in Job Ads and Age Discrimination in Hiring," NBER Working Papers 26552, National Bureau of Economic Research, Inc.
    11. Monique Morrissey & Siavash Radpour & Barbara Schuster, 2023. "Older Workers and Retirement Security: a Review," SCEPA working paper series. 2023-01, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    12. Patrick Button & Philip Armour & Simon Hollands, 2023. "Estimating the Effects of the ADA Amendments Act on the Hiring and Termination of Individuals with Disabilities, Using New Disability Categorizations," Upjohn Working Papers 22-377, W.E. Upjohn Institute for Employment Research.

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    More about this item

    JEL classification:

    • 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
    • J7 - Labor and Demographic Economics - - Labor Discrimination
    • J78 - Labor and Demographic Economics - - Labor Discrimination - - - Public Policy (including comparable worth)
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

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