Why Is There Mandatory Retirement? An Empirical Reexamination.

Builds upon Lazear's empirical explanation of mandatory retirement by adding these testable implications: the relationships between mandatory retirement and (1) specific on-the-job training, (2) vested pension plans, and (3) costs of monitoring worker performance. Indicates that a comprehensive explanation requires consideration of human capital and monitoring costs in addition to personal characteristics. (Author/SK)