The Effect of Age Discrimination Laws on Age-Earnings Profiles of Postsecondary Faculty
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Abstract This study investigates the impact of the abolition of mandatory retirement on earnings profiles of faculty in postsecondary institutions. The Age Discrimination in Employment Act (ADEA) excluded faculty from the protection of age discrimination laws until January 1, 1994, due to perceived adverse effects of this legislation on the academic labor market. After 1994, research has found that more faculty are remaining employed beyond the age of 70 and more institutions are offering early retirement plans. This study adds to the literature by finding that the policy change has steepened age-earnings profiles for cohorts entering the labor market, suggesting a stronger job attachment, and, potentially, efficiency gains.
The article of record as published may be found at http://dx.doi.org/10.1007/s11293-009-9201-y
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