- What are the main labor market barriers to older workers?...

Name: Problem 18, Chapter 11: Adult Development and Aging
Uploaded: 2020-05-14T04:09:36-08:00
Duration: 5 min 20 s
Channel: Mihir Nayar
Description: - What are the main labor market barriers to older workers?

Key Concepts

Retirement Policies and Financial Incentives

The structure of pension systems and retirement policies can influence older workers' decisions to remain in or leave the workforce. Early retirement incentives or rigid pension rules might discourage prolonged labor market engagement, making it difficult for those wishing or needing to work longer to find suitable opportunities.

Health and Physical Limitations

Health-related challenges and physical limitations that can accompany aging may affect an older worker's ability to perform certain tasks or maintain sustained employment. These factors can create both self-imposed and externally imposed barriers to continued labor market participation.

Age Discrimination

Age discrimination refers to biases or prejudicial practices whereby older workers are judged less favorably based solely on their age. This can lead to fewer hiring opportunities, limited career advancement, and even premature exits from the labor market, regardless of the individual's skills or experience.

Skill Mismatch and Technological Adaptation

Rapid technological progress and evolving job requirements can create a mismatch between the skills older workers possess and those demanded by modern workplaces. This barrier is compounded when there is insufficient access to training programs or upskilling opportunities that help older workers transition to new roles or technologies.

Transcript

00:01 Hey everyone, today we're answering problem 15 from chapter 4 of the textbook, which asks us to basically identify what factors will shift the demand curve in the labor market.

00:15 So i'm just drawing the labor market graph here, so we have it for reference.

00:20 So we know that wages on the y -axis, and then we have quantity labor dependent on the x -axis.

00:27 All right.

00:27 So we're asking what would cause this to shift entirely to the right or to.

00:32 The left.

00:35 So you have to definitely be thinking about, you know, wages and quantity of labor in terms of the factors.

00:41 And it says to name some of them.

00:44 So you can name any of the six that i'll be labeling.

00:46 This is in chapter four of your textbook.

00:49 It's under table 4 .2 for further reference.

00:52 If you'd like to read more about each of the factors and kind of understand their effects even more.

00:57 I'll describe it here.

00:58 But if you want to like go back and review, just know it's table 4 .2 in chapter 4.

01:03 All right, so the first one, well, let's logically think about output, first and foremost.

01:09 So the first factor is going to be the demand for output.

01:13 What i mean by this is that when the demand for a good produced increases, both the output price and the profitability will increase.

01:23 So when this demand for the good produced increases or the output increases, producers demand more labor.

01:30 So labor will shift to the right.

01:32 Will the demand for labor will shift to the right, for instance? all right, moving on to the second factor, given in that table, we know that the second factor is education and training.

01:49 Now, this factor essentially deals with the fact that if you have a well -trained and educated a workforce, there's going to be an increase for the demand for that type of labor because they're highly skilled.

02:04 And then also increased levels of productivity within the workforce will cause the demand for labor to shift to the right inevitably.

02:13 So increased productivity shifts labor to the right.

02:17 All right, moving on to our third factor, we have technology.

02:23 So technology is a little bit different in that technological changes can act as either substitutes or complements for labor, meaning that the demand for labor may go down.

02:37 If technology is replacing labor...

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