1. Elder denotes seniority in age and experience or wisdom. Older denotes mainly seniority in age.
2. When used in making comparisons, Elder makes reference only to persons, usually siblings or relatives. Older is used for both persons (including unrelated ones) and things.
Examples:
The girl is the elder of the two kids.
My neighbor is older than my grandfather.
This house is located in an older neighborhood.
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