Is Age Discrimination Really Age Discrimination?: The Adea's Unnatural Solution

Abstract

This article questions the premises behind the use of the antidiscrimination model to address the obstacles faced by older employees. By viewing aging against the career wage model, the article identifies predictable problems faced by employees at the tail end of their careers, but questions the appropriateness of treating these as discrimination claims. In particular, the 1986 and 1991 amendments to the ADEA are analyzed to show how the discrimination model can be misused as a pretext for an intergenerational wealth transfer to the generation approaching retirement. That process is facilitated by the effective lobbying efforts of powerful institutional actors, such as the AARP. The article examines the operation of actual programs of mandatory retirement and the Older Workers Benefits Protection Act and concludes with recommendations for institutional reforms in light of the abolition of mandatory retirement.

JEL Classification: J14, J71, K31