This paper analyzes firms' decisions to hire older workers. We model the role of pensions in backloading pay for specifically trained workers. We then evaluate the effects of imposing age discrimination rules and non-discriminatory fringe benefit rules and analyze the consequences for the firm's...

A Danish tax reform, decided in May 2009 and taking effect from the beginning of 2010, lowered the marginal tax rate on top bracket taxable income from 63% to 56%. Because contributions to pension accounts are tax deductible, the reform provided an incentive to increase pension contributions...