Delayed Payment Contracts and a Firm's Propensity to Hire Older Workers

Hutchens, Robert

doi:10.1086/298105

Cited by 161 publications

(153 citation statements)

References 8 publications

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“…In this descriptive paper I turn to the questions of age and gender. Being inspired by the work of Robert Hutchens (1986Hutchens ( , 1988Hutchens ( , 2001Hutchens ( , 2004, I focus on occupational segregation of newly-hired older workers in Western Germany. I use the regional file of the IAB Employment Sample (IABS-R04), a rich dataset with information covering almost thirty years.…”

Section: Resultsmentioning

confidence: 99%

“…US data from the National Longitudinal Survey (NLS) for 1983 shows that incumbents aged 55 years or above are more equally distributed among occupations than newly-hired people in that age group. Hutchens (1986) composes an Opportunity Index 1 to measure the hiring opportunities for older workers. Using the US data from the NLS for 1970 for men, the Opportunity Index for hiring workers above the age of 55 is used as an independent variable in regressions for aspects such as pensions and mandatory retirement.…”

Section: 2mentioning

confidence: 99%

“…On the other hand, firms have less motivation to hire older workers, rather than younger ones, from outside. Hutchens (1986) suggests that delayed payments can also be interpreted as fixed costs. Firms may see a chance to cheat on their workers by terminating their contracts earlier than expected by the workers.…”

Section: Introductionmentioning

confidence: 99%

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Age and Gender Differences in Job Opportunities

Humpert

2013

ijhrs

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There are only a few pieces of literature on age-specific occupational segregation. In this descriptive paper, I focus on occupational opportunities for newly-hired older male and female workers. This study is an enriched replication study of Hutchens (ILRR, 1988), who showed that firms employ older workers, but hire them less often than they hire younger ones. I use a rich dataset for West Germany with information covering almost thirty years, the regional file of the IAB Employment Sample (IABS-R04). By drawing segregation curves and calculating different measures, such as the Dissimilarity Index and the Hutchens Square Root Segregation Index, I find clear evidence that age-related segregation exists. While newly-hired workers in the age groups of 18 to 34 years and 35 to 54 years are quite similarly distributed in terms of the indices, those in the oldest age group, aged 55 years and above, and especially older women, are more segregated. Differences for older male and female workers over time may be explained by changes in labor and retirement policies.

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Section: Resultsmentioning

confidence: 99%

Section: 2mentioning

confidence: 99%

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Age and Gender Differences in Job Opportunities

Humpert

2013

ijhrs

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“…The second approach might cause employers to avoid hiring older workers with past service to be credited. Hutchens (1986) has found that firms with pensions are less likely to hire older workers.…”

Section: Service Creditmentioning

confidence: 99%

Pension Policy for a Mobile Labor Force

Turner¹

1993

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“…Previous studies point out that delaying retirement may have a positive "horizon effect" on job creation, when labor is viewed as a quasi-fixed factor that implies fixed costs (Oi, 1962). These costs result from either a bilateral monopoly problem (Hutchens, 1986), or from an accumulation of specific human capital through training (cf Hashimoto 1981) and imply that firms are more reluctant to hire a worker close to the retirement age. Furthermore focussing on job destruction, Aubert et al (2006) show that there is an agebias technological change, so employers are less likely to keep an older worker in the case of a shock on his job, if his employment duration is too short.…”

Section: Introductionmentioning

confidence: 99%

Taxation of early retirement windows and delaying retirement: The French experience

Messe

2011

Economic Modelling

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This paper investigates the effect of the 2003 French pension reform on hiring, firing and employment rates among older workers. This reform increased the mandatory retirement age and simultaneously it set a tax levied on early retirement windows payed by firms to their older workers, to encourage them to leave their job early. We use a matching model with endogenous job destruction extended to account for a mandatory retirement age and we calibrate the model with data drawn from the French Labor Force Surveys for the years 2001 and 2002. We show that in the case of a high tax rate, delaying retirement raises job separation rates, which partially offsets its positive effect on job finding rates. Consequently, the combination of an increase in the retirement age and a taxation on early retirement windows may have perverse effects on the employment rate among older workers.

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Delayed Payment Contracts and a Firm's Propensity to Hire Older Workers

Cited by 161 publications

References 8 publications

Age and Gender Differences in Job Opportunities

Age and Gender Differences in Job Opportunities

Pension Policy for a Mobile Labor Force

Taxation of early retirement windows and delaying retirement: The French experience

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