Crowded Career Ladders? Intra-Firm Spillovers of Raised Retirement Age

Sona Badalyan
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Sona Badalyan: IAB, CERGE-EI

No 202601, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "I study how delayed retirements reshape firms internal labor markets, leveraging a German reform that raised womens early retirement age by at least three years. The reform increased retention of older women and reduced both internal promotions and external hiring of younger coworkers, with the greatest losses among middle-aged workers who were near to older workers on the career ladder. Spillovers are structured: promotion crowd-outs arise in thick internal labor markets with intense competition, while hiring declines are largest in thin external markets with high turnover costs. Crowd-out effects concentrate within jobcells, whereas coworkers in different jobcells can benefit when retained older workers possess specific human capital. Taken together, the evidence supports slot-constraint theoriesaugmented by firm-specific human-capital mechanisms." (Author's abstract, IAB-Doku) ((en))

JEL-codes: H55 J21 J23 J24 J26 J31 J63 M51 (search for similar items in EconPapers)
Pages: 70 pages
Date: 2026-01-28
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https://doi.org/10.48720/IAB.DP.2601

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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:202601

DOI: 10.48720/IAB.DP.2601

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