New Research Finds That Age Discrimination in Hiring is Still a Problem

Age discrimination is illegal, and with a growing population of older workers and fewer young people entering the workforce, not very smart. By 2024, individuals age 55 and older will represent 25 percent of the nation’s workforce. However, age discrimination persists among employers and they pay a substantial price for it.

Workforce.com: Employers paid $810.4 million to settle age discrimination charges filed with the EEOC between 2010 and 2018 [excluding litigation].

According to new research published this week, age discrimination continues to be a problem in the United States despite such penalties. The study found that workers over 40 are only about half as likely to get a job offer than younger workers if employers know their age. The research, conducted by economics professor David Neumark at the University of California, Irvine found that age-blind employment applications can get older workers in the door, but once employers discover the applicant's age at the in-person interview, the workers still face age discrimination.

David Neumark, Abstract: "I study age discrimination in hiring, exploiting a difference between age-revealed and partially age-blind hiring procedures. Under the first hiring procedure, age is revealed simultaneously with other applicant information and job offer rates are much lower for older than for younger job applicants. Under the second hiring procedure, interview selections are based on detailed, age-blind on-line applications, while subsequent interviews are not age-blind. Older applicants are not under-selected for interviews, but after in-person interviews when age is revealed, older applicants still face a much lower job offer rate. This evidence is strongly consistent with age discrimination in hiring."

Neumark found that the job offer rate after the in-person interview was about 46% lower for older applicants than for younger applicants, even though many of the older workers had more experience and better qualifications and references.

This research suggests that age discrimination continues to be a problem for older workers despite the legal and economic consequences for employers. That is sad, and counterproductive. Hiring and retaining workers who possess decades of knowledge and experience has always been a good business practice.

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By: Don Lam & Curated Content