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When controls were introduced for state-specific characteristics, gender and worker education levels, the results still provide no support for the crowding-out hypothesis. The researchers then questioned whether the employment of older workers has an impact on the “price” of young labor.To test this hypothesis, two measures of “price” were used: hourly wage and annual income.The results again show some positive impacts in both the equations with and without state variables. No evidence was found to support the contention that the employment of older workers reduces the wages of the young. The Center contends that convincing employers and policymakers that the crowding-out theory does not hold is extremely important, given the state of the U.S. retirement system and the need for people to work longer in order to have a secure retirement.“Employers already have reservations about older workers, so adding the false argument that retaining older workers hurts younger ones could impede the ability of older workers to remain in the labor force,” the researchers wrote in their Issue Brief. The Issue Brief can be downloaded from http://crr.bc.edu/briefs/are-aging-baby-boomers-squeezing-young-workers-out-of-jobs/.
When controls were introduced for state-specific characteristics, gender and worker education levels, the results still provide no support for the crowding-out hypothesis.
The researchers then questioned whether the employment of older workers has an impact on the “price” of young labor.To test this hypothesis, two measures of “price” were used: hourly wage and annual income.The results again show some positive impacts in both the equations with and without state variables. No evidence was found to support the contention that the employment of older workers reduces the wages of the young.
The Center contends that convincing employers and policymakers that the crowding-out theory does not hold is extremely important, given the state of the U.S. retirement system and the need for people to work longer in order to have a secure retirement.“Employers already have reservations about older workers, so adding the false argument that retaining older workers hurts younger ones could impede the ability of older workers to remain in the labor force,” the researchers wrote in their Issue Brief.
Rebecca Mooreeditors@plansponsor.com