The Welfare Effects of Protecting Older Workers
Working Paper 35111
DOI 10.3386/w35111
Issue Date
We evaluate the welfare effects of five provincial mandatory retirement bans in Canada from 2005 to 2009 using linked employer-employee tax data. The bans sharply reduce retirements at age 65, with sizable announcement effects and heterogeneity across industries. Post-65 employment and earnings rise at least 14%, with gains comparable to a two-year increase in pension-eligibility ages. Older workers save more and spouses postpone retirement, benefiting public finances, with no observable effects on mortality or younger workers. Highly exposed firms reduce payroll costs via hiring adjustments while maintaining worker productivity and profitability. Our results suggest that protecting older workers was welfare-improving.
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Copy CitationTodd Morris, Stefan Staubli, and Benoit Dostie, "The Welfare Effects of Protecting Older Workers," NBER Working Paper 35111 (2026), https://doi.org/10.3386/w35111.Download Citation