Working Paper: NBER ID: w25572
Authors: Robert L. Clark; Steven Nyce; Beth Ritter; John B. Shoven
Abstract: Economist and public policy analysts have devoted considerable research to examining the work and retirement decisions of employees. Much less effort has been spent on understanding the concerns and challenges of employers if their workers delay retirement and remain on the job until older ages. In this study, we report findings from three employer surveys with the objective of learning how organizations are responding to the aging of their workforces. The surveys provide several important observations. First, employer concerns about workforce aging vary considerably across the economy. To some firms, these demographic changes are of immediate concern and are viewed as a significant risk to the organization while other firms remain more concerned about potential productivity and cost effect of an older labor force. Second, most employers expect the importance of workforce aging to increase in the next five years. In response, a significant proportion of organizations are making changes to working conditions and compensation policies. Third, firms remain reluctant to adopt formal phased retirement policies but are more willing to offer part-time employment, return to work, and other policies on a case by case basis.
Keywords: aging workforce; employer responses; retirement policies
JEL Codes: J1; J2; J23; J26
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| demographic changes (J11) | employer concerns about workforce aging (J26) |
| employer concerns about workforce aging (J26) | employer responses (J53) |
| employer characteristics (M51) | employer concerns about workforce aging (J26) |
| employer concerns about workforce aging (J26) | reluctance to adopt formal phased retirement policies (J26) |
| employer concerns about delayed retirements (J26) | employer policy adjustments (M51) |