Older workers typically possess older vintages of skills than younger workers, and they may suffer more from technological change. Experienced workers never the less have accumulated human capital that make them suitable for adopting new technologies. On the other hand, to adjust to new...

This paper claims that technical progress induces early retirement of older workers. It presents a model where human capital is technology specific, so that technical progress erodes some existing human capital. This affects mostly older workers, who have a smaller incentive to learn the new...