Employment Rates Of Older Workers Research Articles

Demographic change and regional labour markets

Abstract Like many other countries, Germany has experienced rapid population and workforce ageing, yet with substantial variation across regions. In this paper we first use this spatial variation between 1975 and 2014 to estimate quasi-causal supply effects of ageing on regional labour market outcomes, drawing on the identification strategy of Böhm and Siegel (2020). We find in our panel of German labour market regions that workforce mean age has considerable negative effects on the wage returns to age. We also obtain suggestive evidence that relative employment rates of older workers decline when mean age rises. A decomposition of the heterogeneous regional trends using our estimates shows that ageing of rural regions is mainly driven by supply (reflecting local population dynamics) whereas urban ageing is driven by demand (reflecting responses to economic conditions). We discuss the differential implications of these drivers for regional policy.

Extending working lives: How policies shape retirement and labour market participation of older workers

AbstractThis study investigates how policies shape retirement and labour market participation of older workers and thus help extending working lives. It employs a time‐series–cross‐section analysis of the effects of macro‐level institutional pull, push and retention factors on effective retirement age and employment rate of older workers in 15 OECD countries from 1992 to 2010. The comparative approach reveals that public pension system rules that have been geared towards postponing retirement in many countries in past decades, indeed, are significant determinants of lengthening working lives. In particular, statutory retirement age and financial disincentives for early retirement proof important. Institutional effects differ by gender, though. Furthermore, the results point to the importance of social policies supporting labour market participation throughout the life‐course: social investment in human capital and public services clearly supports extending working lives.

Reformas alemãs das pensões e do mercado de trabalho e o potencial aumento da desigualdade social entre trabalhadores de idade mais avançada e pensionistas

Policymakers in all European countries have implemented reforms aimed at delaying retirement and extending working lives mainly to mitigate financial pressure on public pay-asyou-go pension systems and to increase the supply of skilled labour. This could be a reason for an increase of older workers’ labour force participation. This increase was particularly strong in Germany. In the paper at hand, we will answer two research questions: i) how can this steep increase in German older workers’ employment rate be explained? Furthermore, and related to this: ii) have policies for longer working lives fostered inequality? We base our analysis on an extensive literature review and descriptive data analysis. We conclude that the rise of the employment rate of older workers in Germany has several causes. First, the German labour market has performed very well, so that the policy debate has shifted from unemployment to a lack of (skilled) labour. Second, there is a strong increase of female labour market participation. Third, due to cohort effects, today’s older workers are healthier and better skilled than their predecessors. Finally, the pension and labour market reforms aimed at delaying retirement had an effect. However, we also find that lowskilled and low-income workers increasingly have to delay their retirement due to financial reasons. It seems that social inequalities in the retirement transition are increasing in Germany.

The right place for me: A moderated mediation model to explain the involvement of employees aged over 50 years

AbstractOver the past decades, employment rates of older workers in most Western countries have rapidly increased. Hence, there is a growing interest in identifying the organizational dimensions that might impact the psychosocial adjustment of workers aged over 50 years. This study focuses on perceived organizational support (POS) and identity‐related measures (identification and authenticity) as key organizational components for workers at this stage of life. Furthermore, in the relationships discussed, we explore the moderating role of perceived age discrimination. In an ample sample of older workers (N = 4,563, aged 50–66 years), a moderated mediational model was tested where older workers' involvement was associated to POS. In the model, this relationship was mediated by organizational identification and authenticity, and the association between POS, identity‐related measures, and involvement was moderated by age‐based discrimination. Results showed that POS is associated with organizational involvement via organizational identification and authenticity and that high level of age discrimination decreased the positive association between POS, organizational identification, authenticity, and involvement.

Employment at 55+: Do We Want to Work Longer in Lithuania?

The Lithuanian population is aging, and it causes many difficulties for public finances by increasing expenditures on health care, long-term care, and pensions, and also for the labor market by creating labor shortages. One of the ways to cope with demographic aging is to rise the employment rate of older people. According to Eurostat, the employment rate of the elderly aged 55–64 years increased from 49.6 percent in 2005 to 68.5 percent in 2018 in Lithuania and it is higher than the average employment rate of older workers in European Union, which was 58.7 percent in 2018. This paper focuses on older people in Lithuania, aged 55 and over, trying to answer a question whether the elderly in Lithuania willingly work or try to find alternatives such as receiving long-term social insurance benefits. The research findings show that the activity of older people in the labor market grows, and even the share of people with disabilities staying in the labor market increases. However, this analysis also shows that older people are more under risk to lose their job during an economic crisis, and this suggests that trying to find work alternatives can be closely related to one’s economic situation. Moreover, health problems remain one of the main factors limiting the activity of older people in the labor market. It is also noticeable that some labor force reserves exist among people with disabilities and this supposes that creating better adapted working conditions for older and disabled workers in Lithuania could probably contribute to meeting the needs of an aging workforce.

Demographic Change and Regional Labour Markets

Like many other countries, Germany has experienced rapid population and workforce ageing, yet with substantial variation across regions. In this paper we first use this spatial variation between 1975 and 2014 to estimate quasi-causal supply effects of ageing on regional labour market outcomes, drawing on the identification strategy of Bohm and Siegel (2020). We find in our panel of German labour market regions that workforce mean age has considerable negative effects on the wage returns to age. We also obtain suggestive evidence that relative employment rates of older workers decline when mean age rises. A decomposition of the heterogeneous regional trends using our estimates shows that ageing of rural regions is mainly driven by supply (reflecting local population dynamics) whereas urban ageing is driven by demand (reflecting responses to economic conditions). We discuss the differential implications of these drivers for regional policy.

Demographic Change and Regional Labour Markets

Like many other countries, Germany has experienced rapid population and workforce ageing, yet with substantial variation across regions. In this paper we first use this spatial variation between 1975 and 2014 to estimate quasi- causal supply effects of ageing on regional labour market outcomes, drawing on the identification strategy of Bohm and Siegel (2020). We find in our panel of German labour market regions that workforce mean age has considerable negative effects on the wage returns to age. We also obtain suggestive evidence that relative employment rates of older workers decline when mean age rises. A decomposition of the heterogeneous regional trends using our estimates shows that ageing of rural regions is mainly driven by supply (reflecting local population dynamics) whereas urban ageing is driven by demand (reflecting responses to economic conditions). We discuss the differential implications of these drivers for regional policy.

After early retirement: the variety of human-resource strategies of firms towards older employees

Over the last years, the employment rate of older workers has increased sharply in Germany. Against this background, the question arose as to whether firms have contributed actively to the growing share of older employees, either by offering special human resource management (HRM) measures, such as further training (internal strategy) or by hiring older employees from the external labour market (external strategy). Our paper analyses the interrelation between both strategies. By using data from the IAB Establishment Panel, we investigate the determinants of the firms’ decision to use one or the other strategy or to combine both strategies. Our analyses show that some factors, such as firm size, experiences with older staff or a shortage of skilled workers promote the decision for both strategies. Other characteristics, in contrast, have a positive effect on one strategy only. This applies in particular to industrial relations, but also to the share of qualified workers within a company.

From Work Ability Research to Implementation.

Work ability research started in Finland in the 1990s due to the challenges of work force aging. The employment rates of older workers (55+) were below 40% and early retirement and work disability rates were rather common in many European countries. The work ability concept and methods were developed and broad international research activities started in the 1990s. A comprehensive promotion model for work ability was created aiming to prevent work ability from declining during aging. However, to be able to impact the work ability is a complicated and difficult task, and requires effects on human resources, work arrangements, and management. Therefore, only a limited number of intervention studies have shown an improvement of work ability during aging. This article introduces some possibilities regarding how to make work ability interventions more successful.

The growing American health penalty: International trends in the employment of older workers with poor health

Many countries have reduced the generosity of sickness and disability programs while making them more activating – yet few studies have examined how employment rates have subsequently changed. We present estimates of how employment rates of older workers with poor health in 13 high-income countries changed 2004–7 to 2012–15 using HRS/SHARE/ELSA data. We find that those in poor health in the USA have experienced a unique deterioration: they have not only seen a widening gap to the employment rates of those with good health, but their employment rates fell per se. We find only for Sweden (and possibly England) signs that the health employment gap shrank, with rising employment but stable gaps elsewhere. We then examine possible explanations for the development in the USA: we find no evidence it links to labor market trends, but possible links to the USA's lack of disability benefit reform and wider economic trends.

The Growing American Health Penalty: International Trends in the Employment of Older Workers with Poor Health

Many countries have reduced the generosity of disability benefits while making them more activating - yet few studies have examined how employment rates have subsequently changed. We present estimates of how the employment rates of older workers with poor health in 13 high-income countries changed between 2004-7 and 2012-15 using HRS/SHARE/ELSA data. We find that those in poor health in the USA have experienced a unique deterioration: they have not only seen a widening gap to the employment rates of those with good health, but their employment rates fell per se. We find only for Sweden (and possibly England) signs that the health employment gap shrank. We then examine possible explanations for the development in the USA: we find no evidence it links to labour market trends, but possible links to the USA's lack of disability benefit reform - which should be considered alongside the wider challenges of our findings for policymakers.

Increasing the Pensionable Age: What Changes Are OECD Countries Making? What Considerations Are Driving Policy?

The average age of retirement used to be low in most countries due to numerous policies introduced 30 to 40 years ago which encouraged lower retirement ages. However, in response to the growth of the older segment of the population, increased life expectancy, the need for skilled workers, and the precarious financial state of public pension systems, pension reforms have been implemented in the U.S. and Europe, and are now geared towards improving employment rates for older workers, increasing retirement ages and pension eligibility. This paper surveys recent changes in retirement age and maps the changes that have occurred in the last decades using data from 34 OECD (The Organization for Economic Cooperation and Development) countries. This paper then reviews the arguments for and against these changes, the criteria for setting a certain retirement age, and the differences in statutory retirement age by gender, occupation, employment status, and other factors unique to particular countries. The purpose of this paper is to analyze current trends in terms of raising the pensionable age.

La réforme des retraites de 2010 : quel impact sur l’activité des seniors ?

Cette étude s’intéresse à l’évolution du taux d’activité des séniors les années suivant l’augmentation des âges légaux de la retraite programmée par la réforme de 2010. Âge et autres caractéristiques égales par ailleurs, le taux d’activité des salariés impactés par la réforme serait entre 19 et 22 points plus élevé que celui des salariés non impactés. Ce surcroît d’activité se traduit surtout par un accroissement de l’emploi mais également par un accroissement du chômage. L’inactivité (hors retraite) augmente également. Les principales difficultés posée par l’évaluation de l’effet de l’augmentation des âges légaux sont les interactions de la réforme évaluée (celle des âges) avec deux autres réformes : l’augmentation de la durée de cotisation nécessaire pour obtenir le taux plein (réforme 2003 et extension 2014) et le dispositif des carrières longues.

Indicators of sustainable development performance: Case study of European Union countries

Abstract A sustainable development strategy is an essential long-term strategy that aims to bring about a balance of three key policy factors: sustainable economic growth and economic and technological development, sustainable development of society based on social equality, and environmental protection with a rational use of natural resources. The sustainable development strategy is very complex and contains a large number of indicators, so one of the statistical methods that can be used for this complex problem is the I-distance method. It was created as a need to rank countries according to the level of socio-economic development and the problem was how to take advantage of all the indicators in order to calculate a synthetic indicator which would represent the rank. The I-distance method in this paper is used for the ranking of 18 countries of the European Union based on ten indicators that have been selected in accordance with the EU Sustainable Development Strategy. The used headline indicators come from the following areas: socio-economic development, sustainable consumption and production, social inclusion, demographic changes, public health, climate change and energy, sustainable transport, and global partnership. By analysing the initial set of indicators and their correlation coefficients with the found I-distance values, the following most important indicators were found: official development assistance as a share of the gross national income, employment rate of older workers, healthy life years and life expectancy at birth (males), energy consumption of transport relative to GDP etc. Countries that occupied the top three places were Sweden, Luxembourg, and Finland while Croatia, Poland, and Slovenia occupied the last three places.

China’s pension system and reform: an OECD perspective

Population ageing is a worldwide phenomenon, but the speed and scale of ageing are much greater in China than in most other countries. This paper discusses the key demographic indicators of the population in China and provides a comparison with Organisation for Economic Co-operation and Development (OECD) countries. The evolution of the Chinese pension system is summarised before concentrating on the current structure for both public- and private-sector workers as well as rural and urban residents. The level of future pension promises for full career workers is calculated and compared with those of selected OECD countries. Possible future challenges are highlighted as China seeks to achieve an adequate and sustainable pension system. The paper highlights the issue of high level of pensioner poverty in comparison to many OECD countries as well as the low retirement age, particularly for women, despite China’s relatively high employment rates for older workers.

Too old to work, too young to retire?

We study whether employment prospects of old and young workers differ after a plant closure. Using Austrian administrative data, we show that old and young workers face similar displacement costs in terms of employment in the long-run, but old workers lose considerably more initially and gain later. We interpret these findings using a search model with retirement as an absorbing state, that we calibrate to match the observed patterns. Our finding is that the dynamics of relative employment losses of old versus young workers after a displacement are mainly explained by different opportunities of transition into retirement. In contrast, differences in layoff rates and job offer arrival rates cannot explain these patterns. Our results support the idea that retirement incentives, more than weak labor demand, are responsible for the low employment rates of older workers.

The rise of working pensioners: the Swedish case

Abstract According to the Eurostat the old-age dependency (people aged 65 or above relative to those aged 15- 64) in the EU will rise from 28% in 2010 to 58% in 2060. During the same period total hours works are projected to fall contributing to a low projected economic growth over the next half-century. In this paper we argue that this gloomy picture might be challenged by an increase in the employment rates of older workers. Using Sweden as an illustration we show that the ratio of individuals with income from both pension and market work has increased strongly during the last decade. During the same period economic reforms have been introduced creating economic incentives in order to delay the exit from the labor market. In this paper we demonstrate the importance of these economic reforms in explaining increased working hours. The paper also evaluates the fiscal impact of the increase in the employment rates.

The Statistical Analysis of End of Working Life: Methodological and Sociological Issues Raised by the Average Effective Age of Retirement

The paper focuses on the Average Effective Age of Retirement (AEAR) indicator allowing policy makers and scientists to evaluate potential gaps between the age of the end of the working life and the pension age in European countries. Used at the European level after the Barcelona European Council of March 2002, this indicator provided by the Organisation for Economic Co-operation and Development raises a number of problems that are reviewed in this article. First, we show that employment rates of older workers dropped continuously in all European countries since 1970. From the mid-1990s and much more in the last 10 years, following European targets designed to increase older workers employment rates, the AEAR increases. Second, we analyse the formula of the AEAR as such. We show that the “employment rate” is the main component of its calculation. Using data from the European Social Surveys a new indicator based on individual data is provided. Last, using Labour Force Surveys, we develop at a macro-level a dynamic reading of labour market taking into account transitions into and outside employment. In addition, we focus particularly—at a micro-level—on individual factors via a multinomial logistic regression performed for Belgium, France and the Netherlands, particularly characterised by high rates of early retirement since the 1970s. We show that uses of exit arrangement vary depending on to gender, the level of education, and the professional and marital status.

Did the Intergenerational Solidarity Pact increase the employment rate of older workers in Belgium? A macro-econometric evaluation

AbstractIn December 2005, the Belgian government adopted the law on the Intergenerational Solidarity Pact (ISP) aimed at increasing the employment rate of older workers. The main policies of the ISP consist of a pension bonus, reductions in employers’ social security contributions and measures discouraging early retirement while encouraging working time reductions at the end of the career. We aim at evaluating the overall effectiveness of the ISP in raising the employment rate of older workers. To that purpose, we compare the actual evolution of the employment rate after the implementation of the policies to its predicted (counterfactual) evolution based on the estimation of a macro-econometric model in a period prior to the ISP. The results suggest a slight positive impact of the ISP on the employment rate of older workers but to the detriment of the younger workers. However, there is a lack of statistical power to draw firm conclusions on the overall effect of the ISP.JEL classification:J21, J26, H53, E32

How Have Employment Transitions for Older Workers in Germany and the UK Changed?

Extending working life is an objective for many nations. However, the UK government has recently reported only modest improvement “compared to many nations”. A comparison of European, Labour Force Surveys show that Germany has reversed early retirement much faster than the UK since 2003. This was not forecast by previous researchers. In particular, Ebbinghaus’ influential cross-national analysis of early retirement, published in 2006, had predicted that liberal welfare states regimes like the UK would react faster than conservative ones like Germany. A review of changes to pensions and employment policies suggests the UK puts more emphasis on recruitment of older workers, flexible working and gradual retirement while Germany puts more emphasis on retention of older workers through age-management and employment protection. The paper compares the employment transitions of older workers using data covering 1993 to 2013 from the longitudinal surveys British Household Panel Survey, Understanding Society and the German Socio-Economic Panel. It finds little evidence for the recruitment of older workers or gradual retirement in either the UK or Germany and concludes it was the greater employment protection for older workers in Germany that enabled the employment rate for older workers to increase even during the recent recession.