Older workers can stay on the job without blocking younger hires

Mandatory retirement bans in Canadian provinces led to older workers staying employed longer and earning more. This meant older workers saved more and public finances improved, without hurting younger workers or firm profitability.

For years, a common argument against letting older workers stay on the job was that they would take opportunities from younger people. This paper shows that argument is not true. It means governments can consider policies that protect older workers without fear of harming the rest of the labor market.