Older workers staying healthy and working longer is creating a 'congestion effect' that prevents younger generations from advancing in their careers.
April 1, 2026
Original Paper
The Age Divide in the American Workplace
SSRN · 6506398
The Takeaway
While longer careers are seen as a win for health and productivity, they create a demographic bottleneck at the top of firms. Younger workers are losing out on management experience and life milestones because the previous generation is no longer moving out of the way.
From the abstract
Demographic shifts are reshaping the U.S. labor market, as the share of the population within the working age has begun to decline. This paper addresses the implications of this decline with a focus on within-firm dynamics. As longer lifespans and improved health lead more older workers to delay retirement, experienced employees are increasingly concentrated in high-paying managerial and leadership roles. The gap in management representation between workers over 50 and those under 30 has widened