Labor Market For Older Workers Research Articles

THE LANDSCAPE AND OUTLOOK FOR CONTINUED WORK LATER IN LIFE IN THE 2020S

Abstract For the first time in more than three decades, older workers’ labor force participation rates are no longer increasing. Even more remarkable is that this trend contrasts with changes among younger workers, who have experienced increases in labor force participation in the wake of the Covid-19 pandemic. A narrative that has existed for more than two decades—that older workers have been the exception to reductions in labor force participation generally—may be coming to an end. A question then is, in the 2020s, will older workers who exited the labor force during the pandemic return? This symposium explores the new landscape that older workers face. The first paper addresses work-related trade-offs and the extent to which older workers assess the benefits and costs of continued work later in life. The second paper explores how pension eligibility triggers a new stage of the life course, in which older workers can leverage their newfound financial gains to improve work conditions or, alternatively, to exit the labor force. The third paper explores, specifically, how the Covid pandemic changed the workplace for older workers. The fourth paper rounds out the symposium by exploring the relationship between income and health in recent years in both the United States and in China. The flexibility of the U.S. labor force enables fairly abrupt shifts in workforce dynamics in response to macroeconomic changes and other events. The Covid-19 pandemic was one such shift. This symposium provides insight into the post-pandemic labor market for older workers. This is an Economics of Aging Interest Group Sponsored Symposium.

Changing labor market for older workers: short and long-term trends

Changing labor market for older workers: short and long-term trends

Стратегический анализ трендов на рынке труда старшего поколения

Modern society is faced with the negative impact on the economies of population ageing, therefore there is an urgent need to develop a strategy for silver economy. A long-term strategy will help to avoid or to reduce the negative effects that are caused by population ageing, as well as to help to use opportunities that will have a positive effect on the development of the economy as a whole. One of the areas associated with the ageing population that needs to be developed is the labor market for the older workers. Due to increase of the retirement age as in Russia and as in other countries this topic is particularly relevant. Creating conditions of work, changing attitudes towards the elderly, their health, retraining, development of technologies that contribute to the improvement of the labor infrastructure are integral directions for strategic development. It is also necessary to pay attention to the specific vector of development of labor market, which is moving towards the automatization of technology and job cuts, which rather complicates the process of introducing the elderly to the labor market. All of the above areas should be considered when writing a long-term strategy for the development of a labor market for the elderly. The aim of the work is to identify existing trends in labor market for older workers in foreign countries and in Russia. The goal was achieved by analyzing international documents, scientific monographs, official data of state statistics of various countries, ministries of labor, health, internal affairs, and reports of international public organizations. The article discusses general demographic trends, the experience of using the labor potential of older people in Indonesia, Japan, the USA and Russia, reveals global strategic trends in the labor market for older people. The data reflect heterogeneity of attitudes towards older people in labor market in different countries. The rate of protection of elder from dismissal and discrimination is also multiple-valued. For the successful development of labor market and support of high quality of life, it is necessary to create a regulatory framework that will protect older employees, establish government policy and change the culture of perception of older people.

How to prolong labour market participation in the Republic of Croatia?

The paper analyses the labour market for older workers from the point of view of prolonging their participation in the labour market in the Republic of Croatia. Due to unfavourable demographic situations, longer life spans and the threats to pension insurance systems, there have been many initiatives, in a number of countries, in the last couple of decades that have the goal of facilitating longer working lives. The current analysis has shown that older workers in the Republic of Croatia, despite their economic activity being lower than that of other countries, do have the additional working capacity that can permit longer labour market participation, without compromising the employment of younger cohorts. It has also shown that the labour market of the Republic of Croatia is not well suited to older age groups and that those with higher education and financial security, those who generally have the most opportunities, have the best chances for longer labour market participation; while the odds are against longer labour market participation for those with lower education, socioeconomic status and health, even if they might sometimes be willing to participate in the labour market.

Live Longer, Work Longer: The Changing Nature of the Labour Market for Older Workers in OECD Countries

Population ageing poses stark dilemmas for labour markets, social protection systems and cultural norms. It will put strong downward pressure on labour supply, leading to falling real incomes and huge financial pressures on social protection systems unless there is an offsetting increase in employment rates. This is especially true for older workers whose employment rates are well below those of prime-age adults. In this paper, I examine how the labour market for older workers has evolved in OECD countries since 1990, what are the main forces at work, what are the main obstacles to working longer and how might public policies help overcome them. I also speculate about the future for older workers faced with the challenges and opportunities posed by the gig economy.

The labor market for older workers in Germany

The paper describes labor market developments for older workers in Germany in recent years. It provides a a summary of the main changes in labor market and pension policies in Germany which might have contributed to these developments. The main part of the paper offers, on the basis of micro data from the Socioeconomic Panel (SOEP), empirical evidence on changes in employment and long-term unemployment, early retirement as well as relative wages by age for Germany in the period 2000–2014. Based on this empirical analysis, some implications for labor market policies are discussed.

The impact of epidemics on labor market: identifying victims of the Middle East Respiratory Syndrome in the Korean labor market.

BackgroundThe vulnerability approach suggests that disasters such as epidemics have different effects according not only to physical vulnerability but also to economic class (status). This paper examines the effect of the Middle East Respiratory Syndrome epidemic on the labor market to investigate whether vulnerable groups become more vulnerable due to an interaction between the socio-economic structure and physical risk.MethodsThis paper examines the effect of the Middle East Respiratory Syndrome epidemic on the labor market by considering unemployment status, job status, working hours, reason for unemployment and underemployment status. In particular, the study investigates whether the U-shaped curve becomes a J-shaped curve due to the interaction between medical vulnerability and labor market vulnerability after an outbreak, assuming that the relative vulnerability in the labor market by age shows a U curve with peaks for the young group and middle aged and old aged groups using the Economically Active Population Survey. We use the difference in difference approach and also conduct a falsification check and robustness check.ResultsThe results suggest that older workers faced a higher possibility of unemployment after the Middle East Respiratory Syndrome outbreak. In particular, they experienced higher involuntary unemployment and underemployment status as well as decreased working hours. It was confirmed that the relative vulnerability of the labor market for older workers was higher than for the other age groups after the epidemic outbreak due to the double whammy of vulnerability in the medical and labor market. The vulnerability in the young group partially increased compared to the 30s and 40s age groups due to their relative vulnerability in the labor market despite being healthy. We find that assuming the relative vulnerability in the existing labor market shows a U shape with age increase, the U-shaped curve became J-shaped after the outbreak.ConclusionsDisasters like epidemics can occur unexpectedly and affect certain groups more than other. Therefore, medical protection should be enhanced for groups vulnerable to disease and economic measures are also required for the protection of their livelihoods in the labor market to prevent unemployment stemming from inequality.

Hiring older workers: The case of Portugal

Abstract This paper examines the determinants of the age of hiring of older workers in Portugal. The Portuguese case is particularly relevant to study because the level of participation in the labor market for older workers is about six times higher when compared with European countries. The empirical analysis uses Quadros de Pessoal (Tables of Personnel) Portuguese micro database, employer-employee matched files. Specifically, we use data of workers with more than 50 years old and hired during the previous 5 years, splitting the cross-section sample according to firm size. The tested explanatory variables are related to employee, job and firm characteristics. The results show that some determinants of the age of hiring are similar to those obtained previously for other countries. Additionally, sectors of activity with specific private occupational pensions plans affect the hiring of old workers and there are signs of changes in the hiring behavior in last years, probably associated with recent changes in social security laws. Furthermore, the results are relevant for policy design since they identify the sectors and jobs where opportunities for hiring older workers are higher.

The hiring and employment of older workers in Germany: a comparative perspective

AbstractThis paper focuses on the German labor market for older workers. It does so in comparison with other countries and with a unique focus on the role of employer incentives for retaining and hiring older workers. It argues that while employment of older German workers has improved due to changes in government policy, the labor market for older workers remains characterized by far less mobility and opportunity. While we recognize the potential explanations of reduced productivity and age discrimination, we review evidence pointing to the importance of life-cycle contracts (Hutchens, J Lab Econ, 4, 439–457, 1986; Lazear, J Polit Economy, 87, 1261–1284, 1979). These contracts can be efficient but typically imply that older workers will have difficulty being re-hired into career jobs after separation. We suggest that attempts to reduce or eliminate such life-cycle contracts are likely to be counter-productive but suggest how other countries, particularly Japan, have dealt with this issue.

The Labour Market for Older Workers: Mechanisms and Institutions

European labourmarkets are ageing. The share of older workers in the labourmarket is increasing strongly because of the combination of the ageing of the population and the increasing participation rate of older workers. The ageing of society and the resulting pressure on the pension systems have led tomany reforms to encourage longerworking lives, as advocated by OECD (2006). Part of these reforms have been successful and the participation rate of persons aged 55–64 in the EU27 has increased to 55% in 2013 (Fig. 1). The participation rate of older workers increased even stronger in the Netherlands. The share of older workers will continue to rise as the increase in the statutory pension age will become effective in the upcoming years in many countries. The labour market for older workers is special because of the low re-employment rate in case of unemployment. Unemployment in itself is not a special problem as for persons aged 55–64 the rate is only 8% in 2013 in the EU27. For youngsters aged 15–24, the rate is much higher with 23%. For the Netherlands, the unemployment rate of the elderly of 6% is also low compared to 11% for the youngsters. The special feature of the labour market for older workers becomes clear once they get unemployed. Their re-employment rate is low and their long-term unemployment risk is high (Koning and Raterink 2013). Their horizon to retirement becomes shorter and shorter, leading to a so-called endgame effect (Saint-Paul 2009; Cheron et al. 2011) including low search efforts and low human capital investments. Furthermore, older workers are at risk of getting stuck in old occupations with low prospects and limited job satisfaction (Autor and Dorn 2009; Bosch and Ter Weel 2013).

Happily ever after?

Purpose – This paper aims to provide an empirical test of theories proposed in the literature stating that turnover and retirement (two kinds of work withdrawal) involve different employee decisions. It also aims to provide a more general theoretical framework understanding turnover and retirement intentions integrating insights from different theories. Design/methodology/approach – Research hypotheses are tested using the Study on Transitions in Employment, Ability and Motivation (STREAM). This dataset includes information from approximately 15,000 respondents in The Netherlands. Respondents between the age of 45 and 64 were the target group in order to model transitions in the labor market for older workers. This dataset provides a unique opportunity to test turnover and retirement intentions. Findings – First, the results show that personal characteristics such as income, age or health, add more to the explanation of retirement intentions compared to turnover intentions and that work characteristics provide a better explanation of the turnover intention compared to retirement intention. Second, by focusing more closely on retirement intentions, the results show that organizational motivators can increase older workers' labor market participation. Research limitations/implications – First, it is acknowledged that the study investigates intentions rather than actual behavior. Second, given that the data are cross sectional, we cannot make claims about causality. Finally, some of the measures can be improved in future studies. Originality/value – This paper aims at integrating different perspectives on two kinds of work withdrawal (turnover and retirement) into one theoretical model.

Frontiers of Research on Work and Retirement

The shifting boundary between work and retirement and the always-emergent features of retirement practice create a wide opportunity for scholarship and research. After an overview of the scope of retirement research, this article articulates 4 areas that deserve special attention in the present historical circumstance: studies of the form and timing of retirement exits, the labor market for older workers, the quality of pensions, and the experience of retired life. The field should be wary of prescribing regimes of behavior for late careers and retirement that many people are unsuited to fulfill.

Understanding the Labour Market for Older Workers: A Survey

The paper asks why retirement can be so abrupt in countries such as France (½% of the workforce over 65), yet staged in Japan (8% over 65). We find part of the answer in tax laws that prevent people working and receiving a pension, and make little allowance for fair pension increases if retirement is deferred. While these laws have begun to change, we find another part of the answer in employment protection laws. These laws coupled with inflexible collectively agreed wages make employers choosy about hiring the old. The advent of age discrimination law reinforces employment protection and may well reduce older workers' hiring opportunities especially where wages are rigid.

Older workers: can they succeed in the job market?

Objectives: To identify and track the progress of mature age workers who have overcome barriers associated with their age. To identify factors contributing to successful employment outcomes for older workers. To evaluate the success rate of service providers in facilitating access to the labour market for older workers. Methods: Three job network providers were approached: Mission Employment, Salvation Army Employment Plus and Work Ventures Inc. All three agreed to provide addresses of clients aged 45 years and over to be reached through a mail questionnaire. A total of 700 questionnaires were dispatched anonymously with the cooperation of these three organisations. A small number of follow‐up interviews were also conducted with survey respondents who indicated their willingness to be interviewed, and had signed a consent form for this purpose. Several interviews were also conducted with staff at the three cooperating agencies. Results: Of the 700 questionnaires dispatched, 163 were returned, giving a response rate of 23%. Among the respondents, 82 were employed at the time and 81 were unemployed. There were approximately equal responses from men and women. Of the 82 employed persons, 48 had obtained jobs either through answering advertisements or through personal contacts. Only 19 had obtained employment through a job network agency. The most important barrier to employment was identified as age, followed by lack of specialised skills. Conclusions: Early intervention is essential. The chances of re‐employment decline steadily with the duration of unemployment. Age discrimination stands out as the major obstacle to re‐employment for older workers. Personal connections and specialised skills are more important than the activities of job network agencies. Job seekers are also handicapped by inflexibility in relation to training, travel to new locations, and acceptance of a different kind of job.

Book Reviews : RETIRED, UNEMPLOYED OR AT RISK: Changes in the Australian Labour Market for Older Workers, Bureau of Labour Market Research. AGPS, 1983. $9.70

Book Reviews : RETIRED, UNEMPLOYED OR AT RISK: Changes in the Australian Labour Market for Older Workers, Bureau of Labour Market Research. AGPS, 1983. $9.70

BOOK REVIEWS

Book reviewed in this article:HEALTH, WELFARE AND FAMILY IN LATER LIFE: Hal L. Kendig. Dianne M. Gibson, Don T. Rowland and John M. Hemer, Ageing and the Family Project, Australian National University,THE CHALLENGE OF AGEING: M. W. Shaw, ed.RETIRED, UNEMPLOYED OR AT RISK: CHANGES IN THE AUSTRALIAN LABOUR MARKET FOR OLDER WORKERS: Bureau of Labour Market Research, Research Report No. 4.