Work

Adjustment of Deferred Compensation Schemes, Fairness Concerns, and Hiring of Older Workers

Year: 2009

Type: preprint

Abstract: 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 employer-employee 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.

Source: RePEc: Research Papers in Economics

DOI: 10.48548/pubdata-1968

Author: Pfeifer, Christian

Institution: Leuphana University of Lüneburg

Language: English

Topic: Retirement, Disability, and Employment

Subfield: Demography

Field: Social Sciences

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities

Open Access status: green

Funders: Deutscher Akademischer Austauschdienst, Volkswagen Foundation