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Passed Over for Promotion Because of Age: An Empirical Analysis of the Consequences

Scott Adams ()

Journal of Labor Research, 2002, vol. 23, issue 3, 447-461

Abstract: I test whether older individuals who report that their firms favor younger workers in promotion decisions are harmed by this often-cited discriminatory practice. Using the Health and Retirement Study, I determine whether such workers are more likely to experience lower wage growth, to separate from their employer, or to retire early, in comparison with workers with similar demographic and job characteristics. The evidence is consistent with lower wage growth and a greater likelihood of early retirement. Much of the effect, however, is likely to stem from a high correlation between delayed-payment contracts and promotion practices.

Date: 2002
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Handle: RePEc:tra:jlabre:v:23:y:2002:i:3:p:447-461