Abstract
This chapter discusses population aging, increased participation of seniors in the labor force in the United States (and reasons for this), and how these trends are making the struggles of older workers in the labor market increasingly relevant. Evidence examining whether age discrimination is a barrier for seniors as they try to increase their work lives through the common practice of “bridge” jobs is also presented. After discussing the evidence that measures age discrimination, economics and legal research that seeks to determine to what extent the federal Age Discrimination in Employment Act and state-level age discrimination laws prevent age discrimination is discussed. In summary, current evidence indicates that age discrimination exists, but more so for older women. While evidence suggests that age discrimination laws may help, they cannot resolve the challenges imposed by population aging, especially for older women.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
For a discussion of the history of the ADEA at its 30th anniversary, see Eglit (1997).
- 2.
These trends may differ by race and race-by-gender. See, e.g., Lahey (2018).
- 3.
The hiring rate is calculated from Quarterly Workforce Indicators (QWI) data as the number of hires divided by employment for that age group and gender. This is calculated as relative to the hiring rate for men aged 25–34. A value of 50% means that this group has half the hiring rate of men aged 25–34.
- 4.
As supporting evidence, Figure 9.6 shows that mean unemployment durations were also generally increasing for older workers after 2000.
- 5.
Calculated by the author using 2015 data from the Current Population Survey, via IPUMS CPS (Flood, King, Ruggles, & Warren, 2015).
- 6.
- 7.
To be more specific, compensatory and punitive damages are not allowed under the ADEA, but “liquidated damages” are those which are available up to the amount of back pay for a willful violation of the ADEA. A violation is willful when an employer either knew it engaged in illegal conduct under the ADEA or the employer showed “reckless disregard” for whether it was prohibited. See https://www.americanbar.org/content/dam/aba/administrative/labor_law/meetings/2011/annualmeeting/004.authcheckdam.pdf. Neumark and Song (2013) classify states as having larger damages than the ADEA if they allow compensatory or punitive damages, regardless of if they require proof of intent or willful violation.
- 8.
The filing period for the ADEA for states without a law is 180 days, but is 300 days for states with a state law and enforcement agency.
- 9.
These are the dates of the Great Recession as determined by the National Bureau of Economic Research (NBER) Business Cycle Dating Committee. See http://www.nber.org/cycles.html.
- 10.
- 11.
The author’s calculations for this, using Current Population Survey data, are available upon request. Note that the effect of recessions on unemployment durations typically takes a few years to materialize, hence the 2012 peak.
- 12.
557 U.S. 167 (2009), decided June 18, 2009.
- 13.
“But for” the discrimination, the adverse employment action would not have happened. See http://www.constangy.com/communications-247.html (accessed June 5, 2017) for useful discussion.
- 14.
Under “mixed-motive,” the jury is instructed to rule for the plaintiff if they determine that the protected class was a motivating factor, even if other (legal) factors were also present. See Price Waterhouse v. Hopkins, 490 U.S. 228 (1989).
- 15.
Employers could use language that is suggestive that they want younger workers. This could be leveraging age-related stereotypes, requesting a candidate who is more flexible, able to learn, energetic, or better with technology, which are stereotypes associated with younger workers (relative to older workers) in the industrial psychology literature (e.g., Burn, Button, Munguia Corella, & Neumark, 2019; Posthuma & Campion, 2007). While these requests could be well-intentioned, as they are related to productivity on the job, employers could also use this strategy to intentionally filter out older workers. More aggressive examples are phrases such as “digital native,” which suggests that the ideal candidate “grew up” with technology. See, e.g., http://fortune.com/2015/05/04/digital-native-employers-bias/ (accessed March 29, 2019).
- 16.
In addition to this happening in Kleber, it seems common, especially in the tech industry. Other way this is phrased in job advertisements includes “Class of 2007 or 2008 preferred” (from a Facebook job advertisement) or numerous tech companies specifically requesting a “new grad.” See, e.g., http://fortune.com/2015/05/04/digital-native-employers-bias/ (accessed March 29, 2019).
- 17.
This could include searching for candidates only through job fairs hosted by educational institutions or posting the job ad only in venues that younger people use, such as social media websites, or using the tools of social media websites to only advertise job postings to younger candidates, either directly or indirectly. Many social media websites and tech companies allowed targeting based on age. See https://www.reuters.com/article/us-facebook-lawsuit-discrimination/facebook-ads-that-let-employers-target-younger-workers-focus-of-u-s-lawsuit-idUSKBN1EF09B (accessed March 29, 2019). This appears to be changing, as Facebook no longer allows age, gender, or ZIP Code targeting for housing, employment, and credit-related advertisements. See https://www.wsj.com/articles/facebook-axes-age-gender-and-other-targeting-for-some-sensitive-ads-11553018450 (accessed March 20, 2019).
- 18.
Case law showing that this is not allowed includes Thompson v. Mississippi State Personnel Board, 674 F. Supp. 198 (N.D. Miss 1987), Murdock v. B.F. Goodrich, 1992 Ohio App. LEXIS 6611, and Sherman v. American Cyanamid Company, 1999 U.S. App. LEXIS 21086. See McLaughlin (2018) for a discussion of these cases. Ventrell-Monsees (2014) also lists Johnson v. Napolitano, 2013 WL 1285164 ∗8 (S.D.N.Y., 2013) which cited Cartee v. Wilbur Smith Associates, Inc., No. 3:08–4132-JFAPJG, 2010 WL 1052082, at ∗4 (D.S.C. Mar 22, 2010); Block-Victor v. CITG Promotions, L.L.C., 665 F. Supp. 2d 797, 808 (E.D. Mich. Oct 13, 2009); Smith v. Board of County Com’rs of Johnson County, Kan., 96 F. Supp. 2d 1177, 1187 (D. Kan.,2000) (collecting cases); Luce v. Dalton, 166 F.R.D. 457, 461 (S.D. Cal. 1996); see also Kelly v. Drexel University, 907 F. Supp. 864, 875 n. 8 (E.D. Pa. 1995).”
- 19.
Some courts have recognized intersectional discrimination, such as Arnett v. Aspin, 846 F. Supp. 1234, 1241 (E.D. Pa. 1994), Grozynski v. JetBlue Airways Corp., 596 F.3d 93, 109 (2d Cir. 2010), Barnett v. PA Consulting Group, 715 F.3d 354 (D.C. Cir. 2013), DeAngelo v. Dental EZ, Inc., 738 F. Supp. 2d 572–578-79 (E.D. Pa. 2010), Good v. U.S. West Communications, 1995 WL 67672 (D. Or. 1995), Sogg v. American Airlines, 603 N.Y.S.2d 21 (NY App. 1993), and Foley v. Eckhart Richard-Allan Med. Inbus., 1995 U.S. Dist. LEXIS 20663 (C.D. Cal., Nov. 14, 1995), all discussed by Ventrell-Monsees (2014).
- 20.
For the first notable case (Black women), see Jefferies v. Harris Cnty. Cmty. Action Ass’n, 615 F.2d 1025, 1034 (5th Cir. 1980). For Asian women, see Lam v. Univ. of Haw., 40 F.3d 1551, 1562 (9th Cir. 1994).
- 21.
There is, however, a growing literature on how disability discrimination laws protect older workers (Button & Khan, 2019; Neumark, Song, & Button, 2017; Neumark et al., forthcoming; Stock & Beegle, 2004).
References
AARP. (1999). American business and older employees. Washington, DC: AARP.
Adams, S. J. (2002). Passed over for promotion because of age: An empirical analysis of the consequences. Journal of Labor Research, 23(3), 447–461. https://doi.org/10.1007/s12122-002-1046-y
Adams, S. J. (2004). Age discrimination legislation and the employment of older workers. Labour Economics, 11(2), 219–241. https://doi.org/10.1016/j.labeco.2003.06.001
Baert, S, Cockx, B., Gheyle, N., & Vandamme, C. (2013, January). Do employers discriminate less if vacancies are difficult to fill? Evidence from a field experiment (IZA Discussion Paper No. 7145). Retrieved from http://ftp.iza.org/dp7145.pdf
Baert, S., Norga, J., Thuy, Y., & Van Hecke, M. (2016). Getting grey hairs in the labour market. An alternative experiment on age discrimination. Journal of Economic Psychology, 77, 86–101. https://doi.org/10.1016/j.joep.2016.10.002
Bal, P. M., de Lange, A. H., Van der Heijden, B. I. M., Zacher, H., Oderkerk, F. A., & Otten, S. (2015). Young at heart, old at work? Relations between age, (meta-)stereotypes, self-categorization, and retirement attitudes. Journal of Vocational Behavior, 91, 35–45. https://doi.org/10.1016/j.jvb.2015.09.002
Belbase, A., Sanzenbacher, G. T., & Gillis, C. M. (2015, September). Does age-related decline in ability correspond with retirement age? (Boston College Center for Retirement Research Working Paper #2015-24).
Bendick Jr., M., Brown, L. E., & Wall, K. (1999). No foot in the door: An experimental study of employment discrimination against older workers. Journal of Aging & Social Policy, 10(4), 5–23. https://doi.org/10.1300/j031v10n04_02
Bendick Jr., M., Jackson, C. W., & Romero, J. H. (1997). Employment discrimination against older workers: An experimental study of hiring practices. Journal of Aging & Social Policy, 8(4), 25–46. https://doi.org/10.1300/j031v08n04_03
Bertrand, M., & Duflo, E. (2017). Field experiments on discrimination. In A. V. Banerjee & E. Duflo (Eds.), Handbook of economic field experiments (Vol. 1, pp. 309–393). Amsterdam: North-Holland.
Bloch, F. (1994). Antidiscrimination law and minority employment: Recruitment practices and regulatory constraints. Chicago: University of Chicago Press.
Bowen, C. E., & Staudinger, U. M. (2013). Relationship between age and promotion orientation depends on perceived older worker stereotypes. Journals of Gerontology - Series B Psychological Sciences and Social Sciences, 68(1), 59–63. https://doi.org/10.1093/geronb/gbs060
Burn, I., Button, P., Munguia Corella, L., & Neumark, D. (2019). Ageist language in job ads and age discrimination in hiring: Evidence from a field experiment [working paper].
Button, P., & Khan, M. R. (2019). Do stronger employment discrimination protections decrease reliance on Social Security Disability Insurance? Evidence from the social security reforms [working paper].
Baum, C. L., Hannah, R. L., & Ford, W. F. (2002). The effect of the senior citizens’ freedom to work act of 2000 on employer-provided pension and medical plans. Benefits Quarterly, 18(2), 65–72.
Calvo, E. (2006). Does working longer make people healthier and happier? Work opportunities brief #2. Chestnut Hill, MA: Center for Retirement Research at Boston College.
Carlsson, M., & Eriksson, S. (forthcoming). Age discrimination in hiring decisions: Evidence from a field experiment in the labor market. Labour Economics.
Chiu, W. C. K., Chan, A. W., Snape, E., & Redman. (2001). Age stereotypes and discriminatory attitudes towards older workers: An east-west comparison. Human Relations, 54(5), 629–661. https://doi.org/10.1177/0018726701545004
Coile, C., Milligan, K., & Wise, D. A. (2017). Health capacity to work at older ages: Evidence from the United States. In D. A. Wise (Ed.), Social security programs and retirement around the world: The capacity to work at older ages. Chicago, IL: The University of Chicago Press.
Crocette, S. F. (1998). Considering hybrid sex and age discrimination claims by women: Examining approaches to pleading and analysis—A pragmatic model. Golden Gate University Law Review, 28(2), 115–175.
Davis, S. J., & von Wachter, T. (2011). Recessions and the costs of job loss. Brookings Papers on Economic Activity, 2011(2), 1–72. https://doi.org/10.1353/eca.2011.0016
Day, J. (2014). Closing the loophole—Why intersectional claims are needed to address discrimination against older women. Ohio State Law Journal, 75(2), 447–476.
Delaney, N., & Lahey, J. (forthcoming). The ADEA at the intersection of age and race. Forthcoming in the Berkeley Journal of Employment & Labor Law.
Eglit, H. (1997). The age of discrimination in Employment Act at thirty: Where it’s been, where it is today, where it’s going. University of Richmond Law Review, 31(3), 579–756.
Emmons, W. R. & Noeth, B. J. (2014). The economic and financial status of older Americans: Trends and prospects. Center for Household Financial Stability [working paper].
Figinski, T., & Neumark, D. (2016). Does eliminating the earnings test increase the incidence of low income among older women? Research on Aging. https://doi.org/10.3386/w21601
Fix, M., & Struyk, R. J. (Eds.). (1993). Clear and convincing evidence: Measurement of discrimination in America. Washington, DC: The Urban Institute Press.
Flood, S., King, M., Ruggles, S., & Warren, J. R. (2015). Integrated public use microdata series, current population survey: Version 4.0 [Dataset]. Minneapolis, MN: University of Minnesota.
Foreman, M. (2009). Gross v. FBL Financial Services—Oh so gross! University of Memphis Law Review, 40(4), 681–703.
Fritzsche, B., & Marcus, J. (2013). The senior discount: Biases against older career changes. Journal of Applied Social Psychology, 43(2), 350–362. https://doi.org/10.1111/j.1559-1816.2012.01004.x
Figinski, T., & Neumark, D. (2018). Does eliminating the earnings test increase the incidence of low income among older women? Research on Aging, 40(1), 27–53. https://doi.org/10.1177/0164027516676877
Harper, M. C. (2010). The causation standard in federal employment law: Gross v. FBL Financial Services, Inc., and the unfilled promise of the Civil Rights Act of 1991. Buffalo Law Review, 58, 69–145.
Heckman, J., & Siegelman, P. (1993). The Urban Institute Audit Studies: Their methods and findings. In M. Fix & R. J. Struyk (Eds.), Clear and convincing evidence: Measurement of discrimination in America (pp. 187–258). Washington, DC: The Urban Institute Press.
Howden, L. M., & Meyer, J. A. (2011). Age and sex composition: 2010. 2010 Census Briefs (May 2011, C2010BR-03). Washington, DC: U.S. Census Bureau.
Hummert, M. L., Garstka, T. A., Shaner, J. L., & Strahm, S. (1994). Stereotypes of the elderly held by young, middle-aged, and elderly adults. Journal of Gerontology, 49(5), P240–P249. https://doi.org/10.1093/geronj/49.5.p240
Johnson, R. W., Kawachi, J., & Lewis, E. K. (2009). Older workers on the move: Recareering in later life. Washington, DC: AARP Public Policy Institute.
Johnson, R. W., & Neumark, D. (1997). Age discrimination, job separations, and employment status of older workers: Evidence from self-reports. Journal of Human Resources, 32(4), 779–811. https://doi.org/10.2307/146428
Johnston, D. W., & Lordan, G. (2015). Racial prejudice and labour market penalties during economic downturns. European Economic Review, 84, 57–75. https://doi.org/10.1016/j.euroecorev.2015.07.011
Kroft, K., Notowidigdo, M. J., & Lange, F. (2013). Duration dependence and labor market conditions: Evidence from a field experiment. Quarterly Journal of Economics, 128(3), 1123–1167. https://doi.org/10.1093/qje/qjt015
Lahey, J. (2008a). State age protection laws and the Age Discrimination in Employment Act. Journal of Law and Economics, 51(3), 433–460. https://doi.org/10.1086/589670
Lahey, J. (2008b). Age, women, and hiring: An experimental study. Journal of Human Resources, 43(1), 30–56. https://doi.org/10.1353/jhr.2008.0026
Lahey, J. (2018). Understanding why black women are not working longer. In C. Goldin & L. Katz (Eds.), Women working longer. Chicago, IL: The University of Chicago Press.
Lahey, J. N., & Oxley, D. R. (2018). Discrimination at the intersection of age, race, and gender: Evidence from a lab-in-the-field experiment (NBER Working Paper 25357).
Lazarus, S. (2012). Hertz or Avis? Progressives’ quest to reclaim the constitution and the courts. Ohio State Law Journal, 72(6), 1201–1249.
Liebman, J. B., & Luttmer, E. F. P. (2015). Would people behave differently if they better understood social security? Evidence from a field experiment. American Economic Journal: Economic Policy, 7(1), 275–299. https://doi.org/10.3386/w17287
Loughran, D. S., & Haider, S. (2007). Do elderly men respond to taxes on earnings ? Evidence from the social security retirement earnings test (RAND Labor And Population Working Paper WR-223-1).
Lusardi, A. (2003). Planning and saving for retirement. Working paper. Dartmouth College.
Lusardi, A., & Mitchell, O. (2005). Implications for retirement wellbeing (Michigan Retirement Research Center Working Paper #2005-108).
Maestas, N. (2010). Back to work: Expectations and realizations of work after retirement. Journal of Human Resources, 45(3), 718–748. https://doi.org/10.1353/jhr.2010.0011
Maestas, N. (2018). The return to work and women’s employment decisions (National Bureau of Economic Research Working Paper 24429).
McCann, L. A. (2018). The age discrimination in employment act at 50: When will it become a “real” civil rights statute ? ABA Journal of Labor & Employment Law, 33, 89–104.
McLaughlin, J. S. (2018). Falling between the cracks: Discrimination laws and older women. Unpublished paper, SUNY Buffalo, Buffalo, NY.
McLaughlin, J. S., & Neumark, D. (2017). Barriers to later retirement for men: Physical challenges of work and increases in the full retirement age. Research on Aging, 40(3), 232–256.
Mueller, A., Rothstein, J., & von Wachter, T. (2016). Unemployment insurance and disability insurance in the great recession. Journal of Labor Economics, 34(1), 445–475.
Munnell, A. H., Golub-Sass, F., & Varani, A. (2005). How much are workers saving? (Issue in Brief #34). Chestnut Hill, MA: Center for Retirement Research at Boston College.
Munnell, A. H., & Rutledge, M. (2013). The effects of the great recession on the retirement security of older workers. The Annals of the American Academy of Political and Social Science, 650(1), 124–142. https://doi.org/10.1177/0002716213499535
Munnell, A. H., & Sass, S. A. (2007). The labor supply of older Americans (Boston College Center for Retirement Research Working Paper 2007-12). Chestnut Hill, MA: Center for Retirement Research at Boston College.
Munnell, A. H., & Sundén, A. (2006). 401(k) plans are still coming up short. Issue brief no. 44. Chestnut Hill, MA: Center for Retirement Research at Boston College.
Neumark, D. (2009). The age discrimination in employment act and the challenge of population aging. Research on Aging, 31(1), 41–68. https://doi.org/10.1177/0164027508324640
Neumark, D. (2018). Experimental research on labor market discrimination. Journal of Economic Literature, 56(3), 799–866.
Neumark, D., Burn, I., & Button, P. (2017). Age discrimination and hiring of older workers (Federal Reserve Board of San Francisco Economic Letter # 2017-06).
Neumark, D., Burn, I., & Button, P. (2019). Is it harder for older workers to find jobs? New and improved evidence from a field experiment. Journal of Political Economy, 127(2). https://doi.org/10.1086/701029
Neumark, D., Burn, I., Button, P., & Chehras, N. (forthcoming). Do state laws protecting older workers from discrimination reduce age discrimination in hiring? Evidence from a field experiment. Forthcoming in the Journal of Law & Economics
Neumark, D., & Button, P. (2014). Did age discrimination protections help older workers weather the great recession? Journal of Policy Analysis and Management, 33(3), 566–601. https://doi.org/10.1002/pam.21762
Neumark, D., & Song, J. (2013). Do stronger age discrimination laws make social security reforms more effective? Journal of Public Economics, 108, 1–16. https://doi.org/10.3386/w17467
Neumark, D., Song, J., & Button, P. (2017). Does protecting older workers from discrimination make it harder to get hired? Evidence from disability discrimination laws. Research on Aging, 39(1), 29–63. https://doi.org/10.1177/0164027516656142
Ng, T. W. H., & Feldman, D. C. (2012). Evaluating six common stereotypes about older workers with meta-analytical data. Personnel Psychology, 65(4), 821–858. https://doi.org/10.1111/peps.12003
Noonan, B. (2010). The impact of Gross v. FBL Financial Services, Inc. and the meaning of the but-for requirement. Suffolk University Law Review, 43, 921–935.
Neumark, D., Burn, I., & Button, P. (2016). Experimental age discrimination evidence and the Heckman critique. American Economic Review, 106(5), 303–308. https://doi.org/10.1257/aer.p20161008
Neumark, D., Burn, I., & Button, P. (2019). Is it harder for older workers to find jobs? New and improved evidence from a field experiment. Journal of Political Economy, 127(2), 922–970. https://doi.org/10.1086/701029
Neumark, D., & Stock, W. A. (1999). Age discrimination laws and labor market efficiency. Journal of Political Economy, 107(5), 1081. https://doi.org/10.1086/250091
Porter, N. B. (2003). Sex plus age discrimination: Protecting older women workers. Denver University Law Review, 81, 79–111.
Posthuma, R. A., & Campion, M. A. (2007). Age stereotypes in the workplace: Common stereotypes, moderators, and future research directions. Journal of Management, 35(1), 158–188. https://doi.org/10.1177/0149206308318617
Riach, P. A., & Rich, J. (2002). Field experiments of discrimination in the market place. The Economic Journal, 112(November), F480–F518. https://doi.org/10.1111/1468-0297.00080
Riach, K., & Loretto, W. (2009). Identity work and the “unemployed” worker: Age, disability and the lived experience of older unemployed. Work, Employment and Society, 23(1), 102–119. https://doi.org/10.1177/0950017008099780
Riach, P. A., & Rich, J. (2006). An experimental investigation of age discrimination in the French labour market (IZA Discussion Paper No. 2522). Retrieved from http://ftp.iza.org/dp2522.pdf
Riach, P. A., & Rich, J. (2010). An experimental investigation of age discrimination in the English labor market. Annals of Economics and Statistics, 99(100), 169–185. https://doi.org/10.2307/41219164
Rutledge, M. S. (2012). Holding out of opting out? Deciding between retirement and disability applications in recessions (Center for Retirement Research at Boston College Working Paper No. 2012-26). Boston, MA: Center for Retirement Research.
Rutledge, M. S., & Coe, N. B. (2012). Great recession-induced early claimers: Who are they? How much do they lose? (Center for Retirement Research at Boston College Working Paper No. 2012-12). Boston, MA: Center for Retirement Research.
Sandell, S. H., & Iams, H. M. (1997). Reducing women’s poverty by shifting social security benefits from retired couples to widows. Journal of Policy Analysis and Management, 16(2), 279–297. https://doi.org/10.1002/(SICI)1520-6688(199721)16:2<279::AID-PAM5>3.0.CO;2-F
Song, J. G., & Manchester, J. (2007). New evidence on earnings and benefit claims following changes in the retirement earnings test in 2000. Journal of Public Economics, 91(3–4), 669–700. https://doi.org/10.1016/j.jpubeco.2006.11.002
Stock, W. A., & Beegle, K. (2004). Employment protections for older workers: Do disability discrimination laws matter? Contemporary Economic Policy, 22(1), 111–126. https://doi.org/10.1093/cep/byh009
Van Ostrand, L. A. (2009). A close look at ADEA mixed-motives claims and Gross v. FBL Financial Services, Inc. Fordham Law Review, 78, 399–451.
Ventrell-Monsees, C. (2014, November 8). An aging workforce—Cutting edge issues under the ADEA. National Conference on Equal Employment Opportunity Law.
Acknowledgments
I thank Sara Czaja, Emmarose Glaser, Raymond Peeler, and Cathy Ventrell-Monsees for helpful comments. I thank the National Institutes of Health and the National Institute on Aging for funding through a postdoctoral training grant at the RAND Corporation (5T32AG000244-23).
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2020 Springer Nature Switzerland AG
About this chapter
Cite this chapter
Button, P. (2020). Population Aging, Age Discrimination, and Age Discrimination Protections at the 50th Anniversary of the Age Discrimination in Employment Act. In: Czaja, S., Sharit, J., James, J. (eds) Current and Emerging Trends in Aging and Work. Springer, Cham. https://doi.org/10.1007/978-3-030-24135-3_9
Download citation
DOI: https://doi.org/10.1007/978-3-030-24135-3_9
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-24134-6
Online ISBN: 978-3-030-24135-3
eBook Packages: MedicineMedicine (R0)