The development of postal services has played an indisputable role in industrialization, market integration and state formation. Smooth functioning of these services depended on the existence of a well-paid and motivated body of civil servants. I study the organization of the internal labour market for civil servants in postal services in Spain from 1890 to 1935 showing a career in the postal services offered high entry wages, growing wages over the life cycle, and a secure job until retirement. There were two downsides to pursuing a career in the postal services. Firstly, entry and promotion depended on the expansion of employment. Secondly, nominal wages were upward rigid, causing large real wage losses during WWI.

In the past two decades the Supreme Court of Canada made apparently contradictory rulings on mandatory retirement. In 1982, the Court ruled that mandatory retirement for firefighters at age 60 violated provincial human rights laws; in 1990, it found that forced retirement for university faculty and others at age 65 was constitutional. An analysis of the decisions shows that the Court relied on the stereotype of older workers as being less competent than younger workers, and failed to provide older workers with protection against age-based discrimination. A number of the key mandatory retirement cases deal with university faculty and may yet have unanticipated consequences, such as strengthening the role of academic tenure. The unwillingness of the Supreme Court to eliminate mandatory retirement means that ad hoc arrangements driven by changing life cycles, employer needs, demographic changes and legislative actions will continue to arise.

Debate over fixed-age retirement continues as a steady stream of court cases are launched and appealed. Contrary to some early opinion, Charter provisions apparently do not guarantee an end to mandatory retirement and legal decisions have yet to establish any clear precedent. This paper reviews the legal framework of age discrimination cases, examines current attitudes and practices regarding retirement, and outlines major arguments for and against forced retirement. The contrasting principles of individual justice versus comparative justice are emphasized.

The future of mandatory retirement is at least partly driven by changing demographics. In Canada, these demographics include slowing population growth, rapid aging, declining rates of labour force participation, and slowing labour force growth. After reviewing the demographic trends and considering alternate scenarios in labour force participation, we consider the determinants of early departures from the labour force and suggest scenarios that might reverse these trends. With a decline in labour force entrants, delays in early life transitions, and possible reductions in retirement benefits, a trend to retire later would bring mandatory retirement into question.