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Mandatory retirement and older worker employment

Author

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  • M. Shannon
  • D. Grierson

Abstract

. In this paper we take advantage of differences in the legal status of mandatory retirement in Canada across jurisdictions and over time to assess its impact on the share of older people working. The results suggest that making mandatory retirement illegal would have little effect on the size of the older workforce, and therefore such a policy alone would do little to alleviate problems associated with an aging population and the consequent decline in the share of the population employed. JEL Classification: J26, J88 Retraite obligatoire et emploi des travailleurs plus âgés. Ce mémoire tire profit du fait que les règles de la retraite obligatoire ont varié au Canada dans le temps, et d’une juridiction à l’autre, pour étudier l’impact de ces règles sur la proportion des personnes plus âgées qui travaillent. Les résultats suggèrent que rendre la retraite obligatoire illégale aurait peu d’effet sur la taille de main d’œuvre plus âgée, et donc qu’une telle politique en soi ferait peu pour atténuer les problèmes associés au vieillissement de la population et au déclin qui s’ensuit dans la proportion de cette population au travail.

Suggested Citation

  • M. Shannon & D. Grierson, 2004. "Mandatory retirement and older worker employment," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 37(3), pages 528-551, August.
  • Handle: RePEc:wly:canjec:v:37:y:2004:i:3:p:528-551
    DOI: 10.1111/j.0008-4085.2004.00237.x
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    References listed on IDEAS

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    1. Angrist, Joshua D. & Krueger, Alan B., 1999. "Empirical strategies in labor economics," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 23, pages 1277-1366, Elsevier.
    2. Lazear, Edward P, 1979. "Why Is There Mandatory Retirement?," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1261-1284, December.
    3. Morley Gunderson & James E. Pesando, 1988. "The Case for Allowing Mandatory Retirement," Canadian Public Policy, University of Toronto Press, vol. 14(1), pages 32-39, March.
    4. Baker, Michael & Benjamin, Dwayne, 1999. "Early Retirement Provisions and the Labor Force Behavior of Older Men: Evidence from Canada," Journal of Labor Economics, University of Chicago Press, vol. 17(4), pages 724-756, October.
    5. David Neumark & Wendy A. Stock, 1999. "Age Discrimination Laws and Labor Market Efficiency," Journal of Political Economy, University of Chicago Press, vol. 107(5), pages 1081-1110, October.
    6. Morley Gunderson, 2003. "Age Discrimination in Employment in Canada," Contemporary Economic Policy, Western Economic Association International, vol. 21(3), pages 318-328, July.
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    Citations

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    Cited by:

    1. C Machado & Miguel Portela, 2014. "Hours of work and retirement behaviour," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-22, December.
    2. Derek Messacar & Petr Kocourek, 2019. "Pathways to Retirement, Well-Being, and Mandatory Retirement Rules: Evidence from Canadian Reforms," Journal of Labor Research, Springer, vol. 40(3), pages 249-275, September.
    3. Todd Morris & Benoit Dostie, 2023. "Graying and staying on the job: The welfare implications of employment protection for older workers," Cahiers de recherche / Working Papers 15, Institut sur la retraite et l'épargne / Retirement and Savings Institute.
    4. Frank T. Denton & Ross Finnie & Byron G. Spencer, 2009. "Patterns of Retirement as Reflected in Income Tax Records for Older Workers," Quantitative Studies in Economics and Population Research Reports 434, McMaster University.
    5. Wehn‐Jyuan Tsai, 2018. "Mandatory Retirement and Older Worker Employment Decisions: Evidence from a Matched Difference‐in‐Differences Estimator," Pacific Economic Review, Wiley Blackwell, vol. 23(4), pages 590-608, October.
    6. Kajitani Shinya & Kan Mari, 2023. "Pension Reform and Improved Employment Protection: Effects on Older Men’s Employment Outcomes," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 23(4), pages 1017-1043, October.
    7. Warman, Casey & Worswick, Christopher, 2010. "Mandatory Retirement Rules and the Retirement Decisions of University Professors in Canada," Labour Economics, Elsevier, vol. 17(6), pages 1022-1029, December.
    8. Frank T. Denton & Byron G. Spencer, 2008. "What is Retirement? A Review and Assessment of Alternative Concepts and Measures," Social and Economic Dimensions of an Aging Population Research Papers 231, McMaster University.
    9. Worswick, Chris, 2005. "Regles relatives a la retraite obligatoire et decisions de retraite des professeurs d'universite au Canada," Direction des études analytiques : documents de recherche 2005271f, Statistics Canada, Direction des études analytiques.

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    More about this item

    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J88 - Labor and Demographic Economics - - Labor Standards - - - Public Policy

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