The hiring of older workers: evidence from Germany

Fabian Busch, Robert Fenge and Carsten Ochsen ()
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Fabian Busch: University of Rostock
Robert Fenge: University of Rostock
Carsten Ochsen: University of Applied Labour Studies

Empirical Economics, 2025, vol. 68, issue 1, No 3, 139-163

Abstract: Abstract This article analyses how hiring older workers adjusts to demographic change in the labour force by using information from more than 500,000 firms in Germany. We find robust evidence that firms faced with an ageing labour market hire relatively more older workers. However, the pace of this adjustment is relatively slow, particularly when ageing happens outside the firm. The tendency to employ older people is more considerable in East Germany, where the demographic change moves forward faster. Furthermore, part-time working models support hiring older workers, but this effect becomes less important in larger firms and East Germany. Finally, while partial retirement regulations enhance flexibility within the firm, they, unfortunately, diminish the employment opportunities for older external job seekers.

Keywords: Ageing labour force; Hiring of older workers; Panel data models (search for similar items in EconPapers)
JEL-codes: C33 J11 J23 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s00181-024-02637-5

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