The Federal Reserve Bank of San Francisco issued an “Economic Letter” this week noting that “current policies” in place to combat age discrimination in hiring may not work, which is increasing the burden on U.S. Social Security and forcing policy-makers to find ways to limit benefits.
The authors, economists David Neumark and Ian Burn, from the University of California and Patrick Button of Tulane University, also say research shows that age discrimination most adversely affects women who “end up quite poor” at the end of their lives.
The authors say older workers are being encouraged to work longer but can’t find jobs due to age discrimination.
“Population aging and the consequent increased financial burden on the U.S. Social Security system is driving new proposals for program reform. One major reform goal is to create stronger incentives for older individuals to stay in the workforce longer. However, hiring discrimination against older workers creates demand-side barriers that limit the effectiveness of these supply side reforms,” state the authors.
The authors say age discrimination in hiring is creating pressure on policy makers to reduce the age for Social Security benefits and to cut benefits. [Read more…]