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The Determinants of Hiring Older Workers: Evidence from Hong Kong

Author

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  • John S. Heywood
  • Lok-Sang Ho
  • Xiangdong Wei
Abstract
A 1996 survey of Hong Kong establishments designed to identify hiring and employment patterns by workers' age shows that, as in the United States, many firms employed older workers but did not hire older workers. This pattern appears to reflect mainly economic forces, rather than public policy, given that no laws prohibited age discrimination or required uniform fringe benefit provision in Hong Kong. The empirical evidence from the survey is consistent with two broad hypotheses. First, workers and firms are more willing to invest in training when workers are young. Second, delayed compensation more effectively deters shirking among young workers than among older workers and is more readily accepted by young workers.

Suggested Citation

  • John S. Heywood & Lok-Sang Ho & Xiangdong Wei, 1999. "The Determinants of Hiring Older Workers: Evidence from Hong Kong," ILR Review, Cornell University, ILR School, vol. 52(3), pages 444-459, April.
    • Handle: RePEc:sae:ilrrev:v:52:y:1999:i:3:p:444-459
    DOI: 10.1177/001979399905200305
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    References listed on IDEAS

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    Cited by:

    1. Barry T. Hirsch & David A. Macpherson & Melissa A. Hardy, 2000. "Occupational Age Structure and Access for Older Workers," ILR Review, Cornell University, ILR School, vol. 53(3), pages 401-418, April.
    2. Thomas Zwick, 2012. "Earnings Losses after Non-Employment Increase with Age," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 64(1), pages 2-19, January.
    3. Pekka Ilmakunnas & Seija Ilmakunnas, 2014. "Age segregation and hiring of older employees: low mobility revisited," International Journal of Manpower, Emerald Group Publishing Limited, vol. 35(8), pages 1090-1115, October.
    4. Christian Pfeifer, 2009. "Adjustment of Deferred Compensation Schemes, Fairness Concerns, and Hiring of Older Workers," Working Paper Series in Economics 151, University of Lüneburg, Institute of Economics.
    5. W. David Allen, 2015. "The Demand for Younger and Older Workers," Journal of Sports Economics, , vol. 16(2), pages 127-158, February.
    6. Luojia Hu, 2003. "The Hiring Decisions and Compensation Structures of Large Firms," ILR Review, Cornell University, ILR School, vol. 56(4), pages 663-681, July.
    7. Kirsten Daniel & W. S. Siebert, 2005. "Does employment protection reduce the demand for unskilled labour?," International Economic Journal, Taylor & Francis Journals, vol. 19(2), pages 197-222.
    8. Caroli, Ève, 2004. "Note de synthèse sur l'emploi des travailleurs âgés face à l'innovation," CEPREMAP Working Papers (Docweb) 0503, CEPREMAP.
    9. John Heywood & Uwe Jirjahn & Georgi Tsertsvardze, 2010. "Hiring older workers and employing older workers: German evidence," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(2), pages 595-615, March.
    10. Heywood, John S. & Siebert, W. Stanley, 2009. "Understanding the Labour Market for Older Workers: A Survey," IZA Discussion Papers 4033, Institute of Labor Economics (IZA).
    11. Stephan Humpert, 2012. "Age and Gender Differences in Job Opportunities," Working Paper Series in Economics 235, University of Lüneburg, Institute of Economics.
    12. C. Sofia Machado & Miguel Portela, 2011. "Age and opportunities for promotion," NIPE Working Papers 03/2011, NIPE - Universidade do Minho.
    13. Bender, Keith A., 2009. "How are pension integration and pension benefits related?," The Quarterly Review of Economics and Finance, Elsevier, vol. 49(1), pages 26-41, February.
    14. Arjan Heyma & Siemen Werff & Aukje Nauta & Guurtje Sloten, 2014. "What Makes Older Job-Seekers Attractive to Employers?," De Economist, Springer, vol. 162(4), pages 397-414, December.
    15. Henseke, Golo & Tivig, Thusnelda, 2008. "Age, occupations, and opportunities for older workers in Germany," Thuenen-Series of Applied Economic Theory 86, University of Rostock, Institute of Economics.
    16. Garcia, Maria Teresa Medeiros & Fontainha, Elsa & Passos, José, 2017. "Hiring older workers: The case of Portugal," The Journal of the Economics of Ageing, Elsevier, vol. 9(C), pages 71-77.
    17. John S. Heywood & Uwe Jirjahn, 2015. "The German Labor Market for Older Workers in Comparative Perspective," Research Papers in Economics 2015-02, University of Trier, Department of Economics.
    18. Pfeifer, Christian, 2009. "An Intra-Firm Perspective on Wage Profiles and Employment of Older Workers with Special Reference to Human Capital and Deferred Compensation," Hannover Economic Papers (HEP) dp-413, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    19. Konrad Turek & Kène Henkens, 2020. "How Skill Requirements Affect the Likelihood of Recruitment of Older Workers in Poland: The Indirect Role of Age Stereotypes," Work, Employment & Society, British Sociological Association, vol. 34(4), pages 550-570, August.
    20. Fabian Busch & Robert Fenge & Carsten Ochsen, 2021. "Do Firms Hire More Older Workers? Evidence from Germany," CESifo Working Paper Series 9219, CESifo.
    21. Christian Manger, 2014. "Endogenous age discrimination," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(4), pages 1087-1106, October.
    22. Thomas Zwick, 2012. "Consequences of Seniority Wages on the Employment Structure," ILR Review, Cornell University, ILR School, vol. 65(1), pages 108-125, January.
    23. John S. Heywood & Uwe Jirjahn, 2016. "The hiring and employment of older workers in Germany: a comparative perspective [Die Beschäftigung und Neueinstellung älterer Arbeitnehmer in Deutschland: Eine vergleichende Perspektive]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 49(4), pages 349-366, December.
    24. Scott J. Adams & John S. Heywood, 2007. "The Age of Hiring and Deferred Compensation: Evidence from Australia," The Economic Record, The Economic Society of Australia, vol. 83(261), pages 174-190, June.
    25. Daniel, Kirsten & Heywood, John S., 2007. "The determinants of hiring older workers: UK evidence," Labour Economics, Elsevier, vol. 14(1), pages 35-51, January.

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