Adjustment of deferred compensation schemes, fairness concerns, and hiring of older workers

Arbeitspapier

Hutchens (1986, Journal of Labor Economics 4(4), pp. 439-457) argues that deferred compensation schemes impose fixed-costs to firms and, therefore, they employ older workers but prefer to hire younger workers. This paper shows that deferred compensation can be a recruitment barrier even without these fixed-costs, because adjustments of wage-tenure profiles for older new entrants can lead to adverse incentive effects from a fairness perspective. A personnel data set and a linked employeremployee data set reveal that wage-tenure profiles of white-collar workers are indeed adjusted according to entry age but that firms still hire few older workers.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper Series in Economics ; No. 151

Classification and Topics

• Classification: Wirtschaft ; Economics of the Elderly; Economics of the Handicapped; Non-labor Market Discrimination ; Wage Level and Structure; Wage Differentials ; Compensation Packages; Payment Methods ; Personnel Economics: Firm Employment Decisions; Promotions ; Personnel Economics: Compensation and Compensation Methods and Their Effects
• Subject: Deferred compensation ; entry age ; fairness ; internal labor markets ; wages

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Pfeifer, Christian
• Event: Veröffentlichung
• (who): Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre
• (where): Lüneburg
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/30238
• Last update: 10.03.2025, 11:45 AM CET