Age-based stereotypes in hiring and training: how digitalization and labor shortages reshape employer decisions.

Demographic aging contributes to labor shortages and strains welfare systems across Europe, including Germany. In response, extending older workers' labor market participation has become a growing policy concern. Yet, age-based stereotypes may hinder this goal by reducing their chances in personnel decisions like hiring and training. However, the introduction of digital technologies is reshaping work dynamics, while labor shortages-partly driven by demographic aging-are intensifying competition for skilled workers. This puts pressure on companies to upskill their workforce and secure qualified personnel, potentially limiting the scope for decisions based on stereotypes.While age-based stereotypes have been widely studied, the organizational context-such as labor shortages and digitalization-has received less attention. This study analyzes representative employer data from the 2024 BIBB Training Panel in Germany to examine (1) how age-based stereotypes among employers are linked to personnel decisions regarding hiring and training of older workers and (2) how this association differs by perceived labor shortages and digitalization levels.Using fractional-logit regression models (n = 1310), the results show that while age-based stereotypes matter, their influence might be moderated by structural conditions: Digitalization mitigates training decisions that disadvantage older employees. There is also some evidence indicating that labor shortages may reduce hiring bias. These findings indicate that age-based stereotypes and their consequences do not operate in isolation: They are shaped by structural constraints and opportunities. In times of labor shortages and digital transformation, policy should address age-based stereotypes and reposition older workers not as a burden but as an asset.