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The hiring of older workers

Evidence from Germany

Bibliographic Data

ID21542521
AuthorsFabian Busch (University of Rostock), Robert Fenge (University of Rostock), Carsten Ochsen (0000-0002-4178-4249, corresponding author)
Year2025
Volume68
Issue1
Pages139-163
Publication date2025-01-01
Open AccessYes
TypeARTICLE
VenueEmpirical Economics (JOURNAL)
Journal identifiersISSN: 0377-7332 • E-ISSN: 1435-8921
PublisherSpringer Science and Business Media LLC (PUBLISHER)
DOI10.1007/s00181-024-02637-5
OpenAlexW4401855937
LanguageEN
References cited21

This article analyses how hiring older workers adjusts to demographic change in the labour force by using information from more than 500,000 firms in Germany. We find robust evidence that firms faced with an ageing labour market hire relatively more older workers. However, the pace of this adjustment is relatively slow, particularly when ageing happens outside the firm. The tendency to employ older people is more considerable in East Germany, where the demographic change moves forward faster. Furthermore, part-time working models support hiring older workers, but this effect becomes less important in larger firms and East Germany. Finally, while partial retirement regulations enhance flexibility within the firm, they, unfortunately, diminish the employment opportunities for older external job seekers

Business · Demographic economics · Economics · Labour economics · Pace · Political science · Seekers · Financial Literacy, Pension, Retirement Analysis · Labor market dynamics and wage inequality · Retirement, Disability, and Employment

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