Graying and Staying on the Job: The Welfare Implications of Employment Protection for Older Workers

Todd Morris and Benoit Dostie

No 16430, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We study the welfare implications of employment protection for older workers, exploiting recent bans on mandatory retirement across Canadian provinces. Using linked employer- employee tax data, we show that the bans cause large and similar reductions in job separation rates and retirement hazards at age 65, with further reductions at higher ages. The effects vary substantially across industries and firms, and around two-fifths of the adjustments occur between ban announcement and implementation dates. We find no evidence that the demand for older workers falls, but the welfare effects are mediated by spillovers on savings behavior, workplace injuries, and spousal retirement timing.

Keywords: employment protection; retirement; welfare; active and passive savings responses; health effects; spousal spillovers (search for similar items in EconPapers)
JEL-codes: H55 J26 J78 (search for similar items in EconPapers)
Pages: 75 pages
Date: 2023-09
New Economics Papers: this item is included in nep-age, nep-hea, nep-hrm, nep-lma and nep-pbe
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Graying and staying on the job: The welfare implications of employment protection for older workers (2023)
Working Paper: Graying and staying on the job: The welfare implications of employment protection for older workers (2023)
Working Paper: Graying and staying on the job: The welfare implications of employment protection for older workers (2023)
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