The Silver Generation in the labor market: Work and time management of the 65+ age group in North-Eastern Hungary

Abstract

The investigation of the labor market challenges generated by an aging society is currently one of the central subjects of international academic literature. Previous research mostly analyzed the labor market participation of people aged between 55 and 65. However, as the raising of the retirement age is on the agenda in several European countries, the ability and willingness of the 65+ age group to work has become a key issue. Our questionnaire survey conducted in Hajdú-Bihar county, North-Eastern Hungary (N = 2,625, multistage probability sample) focused on this age group, which has received relatively little attention in research with respect to their labor market status. It investigated participation in the formal and informal labor market, the time management of the 65+ age group, and the factors that determine their willingness to work. Our analysis revealed that only a rather small proportion (2.7%) of the investigated age group is engaged in the formal economy, and the vast majority (93%) is not engaged in any gainful activity even in the informal economy. However, in 68.7% of the sample we can identify certain activities that aim to reduce expenses and can be clearly considered as work. Thus the members of the Silver Generation are working to a considerably higher degree than official employment statistics show. The primary obstacle for open labor market involvement is not age but rather education level and health status. According to our research, the level of employment of the 65+ age group is highly affected by the lack of pressing financial need and also by ageism. A total of 99.2% of the respondents possess transfer incomes that cover their living expenses, so in their case there is no financial constraint forcing them to return to the open labor market. At the same time, certain widespread stereotypes about the work involvement of older people are also strongly present among members of the 65+ age group (internalized ageism) and significantly reduce their motivation to participate in employment in the formal economy even among those members of the age group who are still fit for work.