Age Discrimination and Compulsory Retirement in Australia

Abstract

An analysis of a decision of the New South Wales Anti-Discrimination Board that effectively raised the compulsory retirement age for females in New South Wales indicates an insignificant impact on participation rates of older women in that state. In view of similar evidence from the United States and Canada, it is likely that a national ban on compulsory retirement in Australia would also have minimal effects on participation rates of older persons. A ban is unlikely to have significant impacts on hiring and promotion opportunities for other employees, because the number of persons choosing to work past traditional retirement age is small; the impact on the flow of new hires is confined to a temporary transitional period; and the number of employees likely to postpone retirement would occupy only a fraction of the job opportunities created by the continuing dramatic decline in participation rates of older Australians. The small impact of a ban on participation rates also implies minimal impacts on personnel policies, productivity, labour costs and social expenditures on the aged. Since the economic impacts are insignificant, the desirability of prohibiting age discrimination and compulsory retirement should be decided primarily by human rights considerations.