From the employers perspective, mass layoffs may seem like a good chance to remove a higher proportion of generally more expensive older workers without the worry of being sued. On the other hand, employers may be less likely to remove protected older workers because they still fear lawsuits. One thing we do know is that once an older worker loses a job, he or she is much less likely to find a new job than a younger worker is.
Unfortunately, the effect of legislation prohibiting age discrimination is not easy to see and may actually be part of the reason it is so difficult for older workers to find employment. If it is more difficult to fire an older worker than a younger worker, a firm will be less likely to want to hire older workers. Indeed, my research finds that in states where workers have longer time to bring a lawsuit claim, older men work fewer weeks per year, are less likely to be hired, and less likely to be fired than men in states where they do not have as much.
Not many people would suggest that we go back to a world prior to the Age Discrimination in Employment Act, in which advertisements specify the specific ages of people they are willing to hire. However, legislation prohibiting discrimination is no panacea . The recent proposed congressional legislation could have both positive and negative effects on potential older workers.
1. A lot of cases of age discrimination are not found because
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