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The retirement age and the hiring of senior workers

Trond Christian Vigtel

Labour Economics, 2018, vol. 51, issue C, 247-270

Abstract: This paper examines the effect of decreasing the distance to the minimum legal retirement age on the hiring of senior workers. Using variation brought about by a comprehensive old-age public pension reform in Norway in 2011, I identify a positive effect on the hiring of senior workers. The results suggest that the increase was mainly caused by a positive shift in the demand for “risky” senior workers (workers with prior sick-leave and blue-collar workers). This lends support to the notion that risk-averse firms are more willing to hire senior workers when the minimum legal retirement age is decreased.

Keywords: Retirement; Mobility; Pension reform (search for similar items in EconPapers)
JEL-codes: J14 J23 J26 (search for similar items in EconPapers)
Date: 2018
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Handle: RePEc:eee:labeco:v:51:y:2018:i:c:p:247-270