Arbeitspapier

Seniority Wages and the Role of Firms in Retirement

In general, retirement is seen as a pure labor supply phenomenon, but firms can have strong incentives to send expensive older workers into retirement. Based on the seniority wage model developed by Lazear (1979), we discuss steep seniority wage profiles as incentives for firms to dismiss older workers before retirement. Conditional on individual retirement incentives, e.g., social security wealth or health status, the steepness of the wage pro le will have different incentives for workers as compared to firms when it comes to the retirement date. Using an instrumental variable approach to account for selection of workers in our firms and for reverse causality, we find that firms with higher labor costs for older workers are associated with lower job exit age.

Sprache
Englisch

Erschienen in
Series: Working Paper, CD-Lab Aging, Health and the Labor Market, Johannes Kepler University ; No. 1506

Klassifikation
Wirtschaft
Economics of the Elderly; Economics of the Handicapped; Non-labor Market Discrimination
Retirement; Retirement Policies
Wage Level and Structure; Wage Differentials
Social Security and Public Pensions
Thema
retirement
seniority wages
firm incentives

Ereignis
Geistige Schöpfung
(wer)
Frimmel, Wolfgang
Horvath, Thomas
Schnalzenberger, Mario
Winter-Ebmer, Rudolf
Ereignis
Veröffentlichung
(wer)
Johannes Kepler University Linz, Christian Doppler Laboratory Aging, Health and the Labor Market
(wo)
Linz
(wann)
2015

Handle
Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Frimmel, Wolfgang
  • Horvath, Thomas
  • Schnalzenberger, Mario
  • Winter-Ebmer, Rudolf
  • Johannes Kepler University Linz, Christian Doppler Laboratory Aging, Health and the Labor Market

Entstanden

  • 2015

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