Difficulties of integrating older workers into the labor market: exploring the Israeli labor market

Abstract

Purpose – The purpose of this article is to examine the existence of biased stereotypes about older workers. What are the economic implications of such biased stereotypes? Finally, what policy measures are required in order to achieve efficiency in the labor market? Design/methodology/approach – The authors grouped 25 opinions about older workers into three categories of stereotypes. The first category dealt with the productivity of older staff. The other two categories addressed their reliability and adaptability. The authors then questioned 312 Israeli respondents about the degree to which they agreed or disagreed with the opinions. Finally, the authors examined theoretically the economic effects of biased stereotypes about older workers. Findings – The study demonstrates that individual and organizational characteristics affect employers' attitudes. Age was a significant factor in all three categories. The older the respondent, the fewer prejudices he or she had against older workers. Other characteristics such as gender, interaction with older workers, the nature of the respondent's work in the organization, the age of the employees, and the size of the organization were all significant, but not always, and not in all three categories. The findings imply that there are biased stereotypes about older workers, so the allocation of workers is distorted, which leads to a failure of the market. Originality/value – The results strengthen the economic justification for policy intervention to correct the distorted level of employment of older workers in the labor market.

Unemployment among younger and older individuals: does conventional data about unemployment tell us the whole story?

“…Workers 45 and older who have lost their jobs often encounter difficulties in finding a new job (Axelrad et al 2013 ; Marmora and Ritter 2015 ) although today they are more able to work longer than in years past (Johnson 2004 ). In addition to the monetary rewards, work also offers mental and psychological benefits (Axelrad et al 2016 ; Jahoda 1982 ; Winkelmann and Winkelmann 1998 ).…”

“…This phenomenon might marginalize skilled and experience workers, and take away their ability to make a living and accrue pension rights. Thus, employers’ reluctance to hire older workers creates a cycle of poverty and distress, burdening the already overcrowded social institutions and negatively affecting the economy’s productivity and GDP (Axelrad et al 2013 ).…”

“…Based on the low hiring rate of older workers (OECD 2006 ) and the literature about age discrimination against older workers in labor markets (Axelrad et al 2013 ; Lahey 2005 ), we hypothesis that:…”

“…Older workers’ unemployment is mainly characterized by difficulties in finding a new job for those who have lost their jobs (Axelrad et al et al 2013 ). This fact seems counter-intuitive because older workers have the experience and accumulated knowledge that the younger working population lacks.…”

“…This fact seems counter-intuitive because older workers have the experience and accumulated knowledge that the younger working population lacks. The losses to society and the individuals are substantial because life expectancy is increasing, the retirement age is rising in many countries, and people are generally in good health (Axelrad et al 2013 ; Vodopivec and Dolenc 2008 ).…”