Abstract
I test whether older individuals who report that their firms favor younger workers in promotion decisions are harmed by this oftencited discriminatory practice. Using the Health and Retirement Study, I determine whether such workers are more likely to experience lower wage growth, to separate from their employer, or to retire early, in comparison with workers with similar demographic and job characteristics. The evidence is consistent with lower wage growth and a greater likelihood of early retirement. Much of the effect, however, is likely to stem from a high correlation between delayedpayment contracts and promotion practices.
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I thank Jeff Biddle, John Goddeeris, David Neumark, John Strauss, and Jeff Wooldridge for helpful comments and suggestions. I gratefully acknowledge fellowship support during the completion of this paper from the Robert Wood Johnson Foundation.
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Adams, S.J. Passed over for promotion because of age: An empirical analysis of the consequences. J Labor Res 23, 447–461 (2002). https://doi.org/10.1007/s12122-002-1046-y
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DOI: https://doi.org/10.1007/s12122-002-1046-y