Mandatory Retirement and the Employment Rights of Elderly Canadian Immigrants

Hugh Grant and James Townsend

Canadian Public Policy, 2013, vol. 39, issue 1, 135-152

Abstract: This paper considers whether Canadian immigrants are particularly vulnerable to mandatory retirement (MR) rules. Because of their relatively late entry into the Canadian labour market, many immigrants have less time to accumulate sufficient savings for retirement if forced to retire at a specific age. We utilize the General Social Survey (Cycle 21 2007) to examine the extent to which MR has been a binding constraint on the retirement decision of Canadians. We find a significant "MR effect," especially for late-arriving immigrants, who are more likely to suffer financial hardship when they are forced to reitre. Accordingly, recent legislation restricting the practice of MR can be expected to result in important welfare gains for many older workers.

Date: 2013
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