Who hires older workers? A first look at industry variations in the recruitment of mature workers
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Summary
This paper examines age structure variations in firms’ hiring patterns. It uses data from the Linked Employer-Employee Dataset (LEED) to document variations in the recruitment of older workers across industries, in the 2004/05 to 2006/07 period. It was motivated by concerns that the range of job opportunities that are open to job seekers aged 55 years and over may be more limited than for younger or prime-aged job seekers. For each industry, the paper provides measures of the proportion of employees in the workforce who were older, the proportion of new hires who were older, and the ratio of the two, also known as the Hutchens index of hiring opportunity.
Across industries, we find a strong positive correlation between the proportion of existing employees that were older and the proportion of new hires that were older. In other words, industries that employ a high/low proportion of older workers tend to recruit a similar proportion of older workers within their new employee intakes. However, some variations do exist. The industries that recruited a low fraction of older workers relative to the fraction of their existing workers who were in this age group (leading to a low value of the Hutchens index), included many of the manufacturing industries, forestry and logging, food and beverage services, library and other information services, broadcasting, sport and recreation activities, air transport, and telecommunication services.
It is not possible to tell whether low values of the Hutchens index are due to recruitment barriers faced by older job seekers, or to other factors. Alternative explanations are discussed in the paper.
Author: Sylvia Dixon
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