Advertisement

Increasing Employment of Older Workers: Addressing Labour Market Obstacles

  • Milan VodopivecEmail author
  • Dan Finn
  • Suzana Laporšek
  • Matija Vodopivec
  • Nejc Cvörnjek
Article
  • 37 Downloads

Abstract

The paper reviews international experience with selected measures aimed at increasing employment of older workers and identifies best practices. Among the measures addressing worker obstacles, the paper focuses on the promotion of training, on adjusting employment services and active labour market programs for older workers, and on promoting better working conditions; among the areas addressing employer obstacles, it focuses on adjusting employment protection rules for older workers, on subsidizing wages of older workers, and on challenging employers’ negative perceptions. In addition, to offer a perspective into more holistic approaches that countries have applied, the report provides three case studies of targeted programs on older workers in United Kingdom, Germany, and Canada.

Keywords

Older workers Training Employment protection legislation Labour policy 

JEL Classifications

J14 J26 J38 

Notes

Acknowledgments

This paper is part of a larger project that received financial support from the European Union Programme for Employment and Social Innovation “EaSI” (2014-2020).

References

  1. Albanese, A., & Cockx, B. (2015). Permanent wage cost subsidies for older workers an effective tool for increasing working time and postponing early retirement? (discussion paper). Louvain. Retrieved from http://sites.uclouvain.be/econ/DP/IRES/2015006.pdf. Accessed 10 Dec 2018.
  2. Behaghel, L., Crépon, B., & Sédillot, B. (2008). The perverse effects of partial employment protection reform: The case of French older workers. Journal of Public Economics, 92(3), 696–721.  https://doi.org/10.1016/j.jpubeco.2007.12.004.CrossRefGoogle Scholar
  3. Boockmann, B. (2015). The effects of wage subsidies for older workers. IZA World of Labor.  https://doi.org/10.15185/izawol.189.
  4. Boockmann, B., & Brändle, T. (2015). Coaching, Counseling, Case-Working: Do They Help the Older Unemployed Out of Benefit Receipt and Back into the Labor Market? IZA discuassion paper No. 8811.Google Scholar
  5. Boockmann, B., Zwick, T., Ammermüller, A., & Maier, M. (2012). Do hiring subsidies reduce unemployment among older workers? Evidence from natural experiments. Journal of the European Economic Association, 10(4), 735–764.  https://doi.org/10.1111/j.1542-4774.2012.01070.x.CrossRefGoogle Scholar
  6. Cardoso, A. R., Guimarães, P., & Varejão, J. (2011). Are older workers worthy of their pay? An empirical investigation of age-productivity and age-wage nexuses. De Economist, 159, 95–111.CrossRefGoogle Scholar
  7. CEDEFOP (2008). Sectoral training funds in Europe. European Centre for the development of Vocational Training. Panorama series No. 156. Luxembourg.Google Scholar
  8. CEDEFOP (2009a). Using tax incentives to promote education and training. European Centre for the development of vocational training. Thessaloniki. Retrieved from https://www.cedefop.europa.eu/files/5180_en.pdf. Accessed 10 Dec 2018.
  9. CEDEFOP (2009b). Individual learning accounts. European Centre for the development of Vocational Training. Panorama series No. 163. Luxembourg. Retrieved from http://www.cedefop.europa.eu/en/publications-and-resources/publications/5192. Accessed 10 Dec 2018.
  10. Dar, A., Canagarajah, S., & Murphy, P. (2003). Training levies: Rationale and evidence from evaluations. Washington, DC: World Bank Retrieved from http://siteresources.worldbank.org/INTLM/Resources/TrainingLevies.pdf. Accessed 10 Dec 2018.Google Scholar
  11. Department for Business Innovation and Skills. (2011). “Employment and Earning Outcomes from Train to Gain Extension Analysis”, BIS Research Paper Number 48, June 2011. Available at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/32296/11-1036-employment-earning-outcomes-train-to-gain-extension.pdf. Accessed 10 Dec 2018.
  12. Fouarge, D., & Schils, T. (2009). The effect of early retirement incentives on the training participation of older workers. LABOUR, 23(s1), 85–109.  https://doi.org/10.1111/j.1467-9914.2008.00441.x.CrossRefGoogle Scholar
  13. Görlitz, K., & Tamm, M. (2016). The returns to voucher-financed training on wages, employment and job tasks. Economics of Education Review, 52, 51–62.  https://doi.org/10.1016/j.econedurev.2016.01.004.CrossRefGoogle Scholar
  14. Graham, C. (2014). Late-life work and well-being. IZA World of Labor.  https://doi.org/10.15185/izawol.107.
  15. Hidalgo, D., Oosterbeek, H., & Webbink, D. (2014). The impact of training vouchers on low-skilled workers. Labour Economics, 31, 117–128.  https://doi.org/10.1016/j.labeco.2014.09.002.CrossRefGoogle Scholar
  16. Huttunen, K., Pirttilä, J., & Uusitalo, R. (2013). The employment effects of low-wage subsidies. Journal of Public Economics, 97, 49–60.  https://doi.org/10.1016/j.jpubeco.2012.09.007.CrossRefGoogle Scholar
  17. Immervoll, H. & Pearson, M. 2009. A Good Time for Making Work Pay? Taking Stock of In-Wok Benefits and Related Measures across the OECD. IZA Policy Paper No. 3.Google Scholar
  18. Johanson, R. (2009). A review of national training funds. Social protection discussion paper; no. SP 0922. Washington, DC: World Bank Retrieved from http://siteresources.worldbank.org/SOCIALPROTECTION/Resources/SP-Discussion-papers/Labor-Market-DP/0922.pdf. Accessed 10 Dec 2018.Google Scholar
  19. Kamphuis, P., Glebbeek, A. C., & Van Lieshout, H. (2010). Do sectoral training funds stimulate training? International Journal of Training and Development, 14(4), 273–290.CrossRefGoogle Scholar
  20. Kluve, J. (2017). ALMP for older workers. Invited presentation at the 29th EALE conference 2017, 21–23 September (p. 2017). Switzerland: St. Gallen.Google Scholar
  21. Knuth, M. (2014). Broken hierarchies, quasi-markets and supported networks - a governance experiment in the second tier of Germany’s public employment service. Social Policy & Administration, 48(2), 240–261.  https://doi.org/10.1111/spol.12059.CrossRefGoogle Scholar
  22. Kuku, O., Orazem, P. F., Rojid, S., & Vodopivec, M. (2016). Training funds and the incidence of training: The case of Mauritius. Education Economics, 24(3), 280–299.  https://doi.org/10.1080/09645292.2015.1009418.CrossRefGoogle Scholar
  23. Leuven, E., & Oosterbeek, H. (2004). Evaluating the effect of tax deductions on training. Journal of Labor Economics, 22(2), 461–488.  https://doi.org/10.1086/381257.CrossRefGoogle Scholar
  24. Montizaan, R., Cörvers, F., & De Grip, A. (2010). The effects of pension rights and retirement age on training participation: Evidence from a natural experiment. Labour Economics, 17(1), 240–247.  https://doi.org/10.1016/j.labeco.2009.10.004.CrossRefGoogle Scholar
  25. Müller, N., & Behringer, F. (2012). Subsidies and levies as policy instruments to encourage employer-provided training. OECD Education Working Paper No. 80. Retrieved from http://www.oecd.org/officialdocuments/publicdisplaydocumentpdf/?cote=EDU/WKP(2012)17&docLanguage=En. Accessed 10 Dec 2018.
  26. NAO. (2007). Helping people from workless households into work. In National Audit Office report , retrieved from https://www.nao.org.uk/wp-content/uploads/2007/07/0607609.pdf. Accessed 10 Dec 2018.Google Scholar
  27. OECD. (2004). Co-financing lifelong learning : Towards a systemic approach. Paris: OECD Publishing Retrieved from http://www.oecdbookshop.org/en/browse/title-detail/?ISB=9789264018129.Google Scholar
  28. OECD. (2006). Live longer, work longer. Paris: OECD Publishing Retrieved from http://www.oecdbookshop.org/browse.asp?pid=title-detail&lang=EN&ds=&k=5LGJSMZXCGQ4.CrossRefGoogle Scholar
  29. Perez-Johnson, I., Moore, Q., & Santillano, R. (2011). Improving the effectiveness of individual training accounts: Long-term findings from an experimental evaluation of three service delivery models. In Mathematica policy research Retrieved from https://wdr.doleta.gov/research/FullText_Documents/ETAOP_2012_06.pdf.Google Scholar
  30. Picchio, M. (2015). Is training effective for older workers? IZA World of Labor. 10.15185/izawol.121.Google Scholar
  31. Picchio, M., & van Ours, J. C. (2013). Retaining through training even for older workers. Economics of Education Review, 32, 29–48.CrossRefGoogle Scholar
  32. Renkema, A. (2006). Individual learning accounts: A strategy for lifelong learning? Journal of Workplace Learning, 18(6), 384–394.  https://doi.org/10.1108/13665620610682107.CrossRefGoogle Scholar
  33. Schuetze, H. G. (2007). Individual learning accounts and other models of financing lifelong learning. International Journal of Lifelong Education, 26(1), 5–23.  https://doi.org/10.1080/02601370601151349.CrossRefGoogle Scholar
  34. Singer, C., & Toomet, O.-S. (2013). On government-subsidized training programs for older workers. IAB - Discussion Paper, No. 21/2013. Retrieved from https://www.econstor.eu/bitstream/10419/103060/1/775927384.pdf. Accessed 10 Dec 2018.
  35. Širok, K. (2011). Dejavniki in poti upokojevanja v Sloveniji: možnosti podaljševanja delovne aktivnosti. Fakulteta za management, Koper. Retrieved from http://www.fm-kp.si/zalozba/ISBN/978-961-266-109-0.pdf. Accessed 10 Dec 2018.
  36. Sonnet, A., Olsen, H., & Manfredi, T. (2014). Towards more inclusive ageing and employment policies: The lessons from France, the Netherlands. Norway and Switzerland. De Economist, 162, 315–339 Retrieved from http://www.oecd.org/els/emp/Towards-More-Inclusive-Ageing-and-Employment-Policies.pdf. Accessed 10 Dec 2018.CrossRefGoogle Scholar
  37. van Ours, J. C., & Stoeldraijer, L. (2011). Age, wage and productivity in Dutch manufacturing. De Economist, 159, 113–137.CrossRefGoogle Scholar
  38. Vandenberghe, V. (2011). Introduction to De ECONOMIST special issue on “ageing workforces”. De Economist, 159, 89–94.CrossRefGoogle Scholar
  39. Vodopivec, M. (2014). Equal pay for equal work? Wage and productivity differentials during Slovenia’s transition. Eastern European Economics, 52(5), 87–110.CrossRefGoogle Scholar
  40. Vodopivec, M., Laporšek, S., & Vodopivec, M. (2016). Levelling the Playing Field: The Effects of Slovenia’s 2013 Labour Market Reform. IZA Discussion Paper No. 9783.Google Scholar

Copyright information

© Springer Nature B.V. 2019

Authors and Affiliations

  • Milan Vodopivec
    • 1
    • 2
    Email author
  • Dan Finn
    • 3
  • Suzana Laporšek
    • 1
  • Matija Vodopivec
    • 1
  • Nejc Cvörnjek
    • 1
  1. 1.University of PrimorskaKoperSlovenia
  2. 2.IZA Institute for the Study of LabourBonnGermany
  3. 3.University of PortsmouthPortsmouthUK

Personalised recommendations