Age Discrimination Across the Business Cycle

63 Pages Posted: 19 Mar 2021

See all articles by Gordon B. Dahl

Gordon B. Dahl

University of California, San Diego (UCSD); National Bureau of Economic Research (NBER)

Matthew Knepper

University of Georgia

Date Written: March 16, 2021

Abstract

We test whether age discrimination rises during recessions using two complementary analyses. EEOC microdata reveal that age-related firing and hiring charges rise by 3.3% and 1.6%, respectively, for each percentage point increase in a state-industry’s monthly unemployment. Though the opportunity cost of filing falls, the fraction of meritorious claims increases—a sufficient condition for rising discrimination under mild assumptions. Second, we repurpose data from hiring correspondence studies conducted across different cities and time periods during the recovery from the Great Recession. Each percentage point increase in local unemployment reduces the callback rate for older versus younger women by 15%.

Keywords: age discrimination, recessions

JEL Classification: J71, J64, J23

Suggested Citation

Dahl, Gordon B. and Knepper, Matthew, Age Discrimination Across the Business Cycle (March 16, 2021). Available at SSRN: https://ssrn.com/abstract=3805723 or http://dx.doi.org/10.2139/ssrn.3805723

Gordon B. Dahl

University of California, San Diego (UCSD) ( email )

9500 Gilman Drive
Mail Code 0502
La Jolla, CA 92093-0112
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Matthew Knepper (Contact Author)

University of Georgia ( email )

Athens, GA 30602-6254
United States
30602 (Fax)

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