Experts debunk myth of old-versus-young struggle
It’s an assertion that has been accepted as fact by droves of the unemployed: Older people remaining on the job later in life are stealing jobs from young people.
One problem, many economists say: It isn’t supported by a wisp of fact.
“We all cannot believe that we have been fighting this theory for more than 150 years,” said April Yanyuan Wu, a research economist at the Center for Retirement Research at Boston College, who coauthored a paper on the subject.
The theory Wu is referring to is known as “lump of labour,” and it has maintained traction in North America, particularly in a climate of high unemployment. The theory dates to 1851 and says if a group enters the labour market — or in this case, remains in it beyond their normal retirement date — others will be unable to gain employment or will have their hours cut.
It’s a line of thinking that relies on a simple premise: That there are a fixed number of jobs available. In fact, most economists dispute this. When women entered the workforce, there weren’t fewer jobs for men. The economy simply expanded.
The same is true with older workers, they argue.
“There’s no evidence to support that increased employment by older people is going to hurt younger people in any way,” said Alicia Munnell, director of the Center for Retirement Research and the co-author with Wu of Are Aging Baby Boomers Squeezing Young Workers Out of Jobs?
“It’s not going to reduce their wages, it’s not going to reduce their hours, it’s not going to do anything bad to them,” Munnell said. Still, the perception persists.
But economists say the larger macroeconomic view gives a clearer picture: Having older people active and productive actually benefits all age groups, they say, and spurs the creation of jobs. Munnell and Wu analyzed Current Population Survey data to test for any changes in employ- ment among those under 55 when those 55 and older worked in greater numbers. They found no evidence younger workers were losing work. Still, many remain unconvinced. Melissa Quercia, 35, a controller for a small information technology company in Phoenix, said she sees signs of the generational job battle all around her: Jobs once taken by high schoolers now filled by seniors and college graduates who can’t find work.
Older people staying on the job aren’t spurring new jobs, because companies aren’t investing in creating new positions, she said.