How likely are employers to rehire older workers after mandatory retirement? A vignette study among managers

Jaap Oude Mulders, Hendrik P. vam Dalen, K. Henkens, Joop Schippers

    Research output: Contribution to journalArticleAcademicpeer-review

    Abstract

    With a vignette experiment among Dutch managers we examine employers’ considerations in the decision to rehire employees after mandatory retirement. We specifically focus on the effects of the employee’s downward wage flexibility (i.e., the willingness to accept a lower wage) and contract flexibility (i.e., preference for a contract which allows flexible hours or employment). The results show that employers are strongly affected by employees who offer to work for a significantly lower wage, but not by the employees’ preference for a particular labor contract. Employers are overall quite disinclined to rehire employees after mandatory retirement, although large differences exist between employees. Part of these differences can be explained by employers having higher retirement age norms (i.e., the maximum age at which employers consider employees suited for work in their organization).
    Original languageEnglish
    Pages (from-to)415-431
    JournalDe Economist
    Volume162
    Issue number4
    DOIs
    Publication statusPublished - 2014

    Keywords

    • Bridge employment
    • Employers
    • Mandatory retirement
    • Older workers

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