RESEARCH ON THE ECONOMICS OF AGING & AGE DISCRIMINATION

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This proposal seeks support for the completion of numerous research projects on the economics of age discrimination, for training and development in the economics of aging and age discrimination, and for the development of a full-scale, long-term research program in the economics of age discrimination. The research projects focus on the Age Discrimination in Employment Act (ADEA), which prohibits age discrimination and mandatory retirement. The ADEA has been criticized, on theoretical grounds, for reducing opportunities for long-term incentive contracts between workers and firms. One question the proposed research addresses, then, is whether the ADEA has in fact had this effect. In addition, theoretical assessments of the ADEA hinge on the model underlying the age-earnings profile. Thus, a number of projects testing alternative models of the age-earnings profile are proposed. Finally, there is relatively little existing research documenting evidence of, or even evidence consistent with, discrimination against older workers. Consequently, some of the proposed projects assembly evidence and test hypotheses regarding the existence of age discrimination, the forms it takes, and its effects on older workers. The goal of the proposed program is not only to complete these research projects, but also to develop a full-scale research agenda in the economics of age discrimination. To facilitate this, formal and informal training is proposed. The formal training consists of course work in employment discrimination law. The informal training consists of involvement of mentors who are experts in the economics of aging, work with the Health and Retirement Survey, and participation in conferences and seminars through the NBER's Aging Program, and the University of Michigan Population Studies Center. The research, training, and development will be carried out under the auspices of the NBER's Aging Program. The involvement of the NBER in the program will facilitate interaction with other researchers, collaborative research, and dissemination and publication of the results.