The Economics of Imperfect Labor Markets

Although mandatory retirement may not be a desirable solution, it is definitely a reasonable one under several circumstances. Mandatory retirement can be applied by companies to employees whose age surpasses the recommended working one in the industry (Börsch-Supan & Coile, 2021). In such cases, mandatory retirement is needed since there is evidence that at a certain age, a person’s physical states have a considerable probability of deteriorating. As a result, if such a person continues to work, they may not perform their tasks as efficiently as before. For instance, firefighters have to be physically fit to save people from fires, yet due to age, their abilities can decrease, leading to risks for both professionals and fire victims. The second circumstance when mandatory retirement is justified is the situation when a person reaches the age during which the likelihood of their cognitive skills declining becomes high. In such cases, the occupation which can be subject to mandatory retirement is the judicial one since older judges may not have the necessary cognitive skills to analyze and make decisions effectively. Nevertheless, it is important to ensure that all mandatory retirement laws are based on actual scientific evidence.

Response to Jessica’s Post

The concept of bridge jobs is an extremely effective one since it enables a person to undergo a difficult period when they change careers. It would be sensible if the government was to adopt the idea and introduce bridge jobs as part of retraining programs for people who were made redundant in declining industries (Boeri & Ours, 2021). Such an arrangement would help the newly unemployed individuals to avoid suffering from a lack of finance and make a better career transition.

Response to Felecia’s Post

Background check is an important procedure, and there must be certain policies regulating it, and apart from what you mentioned, it is also important to expand the number of referrers. For instance, when a person undergoes an interview for a new job, the HR manager should contact not only the HR department of the person’s previous work but also their former colleagues. Thus, by using such a strategy, HR managers can obtain a more comprehensive understanding of the candidate’s personality and expertise.

References

Boeri, T., & Ours, J. (2021). The economics of imperfect labor markets (3d ed.). Princeton University Press.

Börsch-Supan, A., & Coile, C. (2021). Social security programs and retirement around the world: Reforms and retirement incentives. University of Chicago Press.

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