scholarly journals In medio stat victus: Labor Demand Effects of an Increase in the Retirement Age

2021 ◽  
Author(s):  
Tito Boeri ◽  
Pietro Garibaldi ◽  
Espen R. Moen
Keyword(s):  
Older Workers ◽  
Pension Reform ◽  
Labor Demand ◽  
Employment Protection ◽  
Retirement Age ◽  
Sudden Increase ◽  
Social Security Administration ◽  
Protection Legislation ◽  
Lock In ◽  
Unique Dataset

AbstractAfter falling for four decades, statutory retirement ages are increasing in most OECD countries. The labor market adjustment to these reforms has not yet been thoroughly investigated by the literature. We draw on a major pension reform that took place in Italy in December 2011 that increased the retirement age by up to six years for some categories of workers. We have access to a unique dataset validated by the Italian social security administration (INPS), which identifies in each private firm, based on an administrative exam of eligibility conditions, how many workers were locked in by the sudden increase in the retirement age, and for how long. We find that firms mostly affected by the lock in are those that were downsizing even before the policy shock. The increase in the retirement age seems to displace more middle-aged workers than young workers. Furthermore, there is not a one-to-one increase in the number of older workers in the firms where some workers were locked in by the reform. We provide tentative explanations for these results, based on the interaction between retirement, employment protection legislation and liquidity constraints of firms.

scholarly journals Persons of Pre-Retirement Age in the Labour Market: Employment Problems and Support Measures

2020 ◽  
Vol 16 (4) ◽  
pp. 1178-1192
Author(s):  
Natalya A. Chernykh ◽  
Anna N. Tarasova ◽  
Andrey E. Syrchin
Keyword(s):  
Labour Market ◽  
Older Workers ◽  
Pension Reform ◽  
Economic Incentives ◽  
Age Discrimination ◽  
Government Support ◽  
Retirement Age ◽  
Support Measures ◽  
Employment Sector ◽  
The Government

The problem of age discrimination in the labour sector has become even more relevant, as the increase in the retirement age and the COVID-19 pandemic in Russia reinforce ageism. The article aims to assess the incidence of age discrimination in the labour market of the Sverdlovsk Region and examine employers’ behaviour towards people nearing retirement. The mixed methodology includes quantitative (analysis of statistics, questionnaire survey, content analysis) and qualitative (in-depth interviews with employers) research methods. While in the 1990s age discrimination was evident and expressed in the exclusion of older workers from the employment sector, now age discrimination is latent and has different manifestations. The results showed that people aged over 45 have less job opportunities in the labour market. Thus, most of them choose to maintain employment. This strategy, however, does not protect against other discriminatory practices such as displacement to less paid positions, reduced pay rate, etc. This situation leads to the decrease in the average wage of workers aged 50-55 by approximately 25%. We can conclude that employers did not change their behaviour and continue using discriminatory practices to maximise the return on human capital, shifting the risks of pension reform to employees. The government is trying to smooth over the differences between the effectiveness of the regional economic system, focused on maximising the use of regional human resources, and the effectiveness of individual organisations by protecting labour rights and promoting the employment of people nearing retirement. However, the government support measures mainly focus on training or retraining of people aged over 50, while employers lack economic incentives to reconsider their attitude towards older workers. Thus, we recommend developing governmental mechanisms for encouraging employers to change their personnel policy concerning employees aged over 50.

scholarly journals Retirement timing in Italy: rising age and the advantages of a stable working career

2020 ◽  
pp. 1-19
Author(s):  
Marco Trentini
Keyword(s):  
Older Workers ◽  
Pension Reform ◽  
Retirement Age ◽  
Time Model ◽  
Work History ◽  
Involuntary Retirement ◽  
Kaplan Meier ◽  
Retirement Timing ◽  
And Gender ◽  
The Stability

Abstract This article looks at how retirement timing is changing in Italy. A first aim is descriptive and it is to identify recent trends in retirement age, following the pension reform. Then the focus is on factors which may favour or hinder the extension of the working career of older workers. They are studied by looking at the reasons for retirement, introducing the distinction between voluntary and involuntary retirement, and some predictors of retirement. Some of them relate to the work history of individuals, in particular the stability/instability of careers due to episodes of unemployment. The level of education and gender, two variables that may affect the employability of older workers, have also been considered. The study is based on a longitudinal analysis (Kaplan–Meier survival estimates of transition to retirement and binomial logit discrete-time model for the analysis of retirement predictors) of the Survey of Health, Ageing and Retirement in Europe (SHARE) Job Episodes Panel data. They refer to a sample of 1,999 individuals born between 1911 and 1959. Although the various pension reforms initiated in Italy in the 1990s have not yet been fully implemented, retirement age is rising, even in the case of involuntary retirement. Regarding work history, the advantages of a working career with a small number of unemployment episodes emerge from the study.

scholarly journals The Postretirement Well-Being of Workers With Disabilities

2018 ◽  
Vol 30 (1) ◽  
pp. 46-55 ◽  
Author(s):  
April Yanyuan Wu ◽  
Jody Schimmel Hyde
Keyword(s):  
Social Security ◽  
Older Workers ◽  
Well Being ◽  
Vulnerable Groups ◽  
Retirement Age ◽  
Social Security Administration ◽  
Retirement Benefits ◽  
The Social ◽  
Social Security Disability ◽  
Better Than

Older workers who develop significant limitations in health or functioning face declines in income and consumption and an increased likelihood of poverty in the years prior to retirement. We assess the extent to which those differences persist after reaching retirement age. We use the Health and Retirement Study (HRS) linked to Social Security Administration (SSA) records to compare the postretirement financial well-being of workers who experienced disability onset during their working years with those who did not, based on their claiming behavior for Social Security disability and retirement benefits. We find that even after full retirement age, gaps that emerged prior to retirement persist; those who experienced disability prior to retirement had lower incomes, were more likely to be in poverty, and had significantly lower wealth. Workers with disabilities who claimed Social Security Disability Insurance (DI) fared better than those who were rejected for such benefits, yet both groups were worse off than those who delayed claiming benefits until they were eligible for Social Security Old Age and Survivors Insurance (OASI) benefits. Our findings indicate that any changes to the Social Security benefit structure must be mindful of the short- and longer term implications for already-vulnerable groups of workers.

Zijn hervormingen van arbeidsmarktinstituties hét antwoord op de arbeidsmarktproblematiek?

2012 ◽  
Vol 28 (4) ◽  
Author(s):  
Jaap de Koning
Keyword(s):  
Labour Market ◽  
Older Workers ◽  
Employment Protection ◽  
Dominant Factor ◽  
Market Institutions ◽  
Labour Market Institutions ◽  
Regular Employment ◽  
Protection Legislation ◽  
Low Educated ◽  
Pension Age

Are reforms of labour market institutions the answer to the labour market problems? Are reforms of labour market institutions the answer to the labour market problems? Two contextual developments are likely to cause labour market problems in the near future. First, the ageing of the population reduces labour supply, which would lead to labour shortages. Raising the pension age to 66 or even 67 years of age will only partly solve this problem. Second, the economy is becoming more volatile, requiring more labour flexibility. In this article three reforms are evaluated that are often seen as important solutions to these problems. The first reform is the further reduction of unemployment benefits and benefit duration. The second reform is a new system of individualized wage subsidies that is supposed to lead to regular employment for many people with a low productivity. The third reform implies a liberalization of employment protection legislation. On the basis of a review of the literature our conclusion is that the employment effects of these reforms will be quite limited. What is needed is a broad package of specific measures target at specific groups: the low educated, people with health problems, women, older workers and migrants. Education is the dominant factor, which does not only affect labour participation and productivity directly, but also indirectly through health. Furthermore, also among the other groups the lower educated face the biggest problems.

The demand for older workers and age discrimination: International experience and Russian realities

2019 ◽  
pp. 99-121
Author(s):  
Maria A. Ivanova
Keyword(s):  
Labor Market ◽  
Older Workers ◽  
Pension Reform ◽  
International Experience ◽  
Age Discrimination ◽  
Retirement Age ◽  
Employment Policy ◽  
Negative Effects ◽  
Macroeconomic Analysis ◽  
High Age

This paper is devoted to the analysis of the demand for older workers and age discrimination in the Russian labor market. The recent pension reform has brought widespread attention to these issues. Macroeconomic analysis showed that, despite the growth in the retirement age population and the increase in their presence in the labor market over the past decade, the demand for older workers has still been limited. One of the reasons for this situation is the relatively high age discrimination both in society and in the Russian labor market. Given this circumstance, raising retirement age should be accompanied by demandside efforts such as improving age discrimination legislation and age-friendly employment policy. The analysis of extensive international experience allows us to develop recommendations that will help smooth out negative effects of raising retirement age for certain categories of workers.

Retirement - Not Necessarily a Farewell to Work Life

2012 ◽  
pp. 87-98
Author(s):  
Anne Inga Hilsen ◽  
Robert Salomon
Keyword(s):  
Older Workers ◽  
Pension Reform ◽  
Working Life ◽  
Work Life ◽  
Retirement Age ◽  
Managerial Practices ◽  
Three Phase ◽  
Social Link ◽  
The Uk ◽  
Life Work

Due to financial and demographic reasons, many countries are trying to increase the actual retirement age. Pension reforms are taking place in countries such as France, Greece and the UK. Norway has recently introduced a new pension reform from January 1st 2011 to encourage longer work life careers. These reforms may lead to a variety of options on life/work balance choices at the later stages of working life. Based on earlier studies, the article illustrate the identification of a three overlapping phases of good managerial practices and worker responses affecting the employment of older workers by developing an analytical model ("a three phase perspective on senior policies") of organisational orientations towards older workers. This paper focuses on a possible fourth phase at the end of the working career as well as the transition from work to retirement. The fourth phase consists of both an economic and a social link between employer and employee.

scholarly journals Social Challenges of the New Pension Reform in the Current Demographic Situation in Rossiya

2019 ◽  
Vol 15 (1) ◽  
pp. 59-64
Author(s):  
Valentina Dobrokhleb
Keyword(s):  
Life Expectancy ◽  
Older Workers ◽  
Pension Reform ◽  
Practical Importance ◽  
Developed Countries ◽  
High Tech ◽  
Retirement Age ◽  
Demographic Situation ◽  
Social Challenges ◽  
Demographic Aging

The Object of the Study, is the social challenges associated with the new pension reform in Rossiya. The Subject of the Study is the current demographic situation. One of the main civilizational challenges in Russia today is the demographic situation caused by the change in the age structure of the population – the birth rate is falling, the proportion and number of children's cohorts are decreasing, and the number of elderly people is steadily increasing. In our country, in accordance with the Federal law "On Amendments to Certain Legislative Acts of the Russian Federation on the Appointment and Payment of Pensions", an increase in the retirement age has been approved. Changes in legislation to raise the retirement age in Russia are conducted in conditions of low life expectancy in comparison with other countries, as well as without taking into account the fact that the Russian regions are "aging" in different ways. If we talk about the regions, the oldest of them is the Tula Oblast’, where the number of citizens belonging to the category 60+ reaches 18.2 percent, and the youngest is considered to be Chechnya, in which such people are 4.3 percent, that is, the "geographical" gap is also very significant. The Main Theoretical Provisions of practical importance are that in the context of the adoption of the new pension reform, the main social challenges are: low life expectancy as well as low compared with economically developed countries, the survival of the elderly and old people; the continuing gap in the life expectancy of men and women, while the life expectancy of women is higher than that of men, and the level of their health is lower; the lack of a clear system of advanced training of older workers, including in the pre-retirement age; low rates of creation of new high-tech jobs in the country; poverty of the population due to the low level of wages; significant regional differences in the rate of demographic aging and in access to jobs, including high-tech. All this requires the adoption of effective management decisions to achieve the goals of economic development of the country, scheduled up to 2024.

Implications of higher retirement age for the labor market

2017 ◽  
pp. 22-39 ◽  
Author(s):  
M. Ivanova ◽  
A. Balaev ◽  
E. Gurvich
Keyword(s):  
Economic Growth ◽  
Labor Market ◽  
Labor Supply ◽  
Labor Force ◽  
Labor Demand ◽  
Retirement Age ◽  
Demographic Trends ◽  
Men And Women ◽  
Demographic Projections ◽  
The Impact

The paper considers the impact of the increase in retirement age on labor supply and economic growth. Combining own estimates of labor participation and demographic projections by the Rosstat, the authors predict marked fall in the labor force (by 5.6 million persons over 2016-2030). Labor demand is also going down but to a lesser degree. If vigorous measures are not implemented, the labor force shortage will reach 6% of the labor force by the period end, thus restraining economic growth. Even rapid and ambitious increase in the retirement age (by 1 year each year to 65 years for both men and women) can only partially mitigate the adverse consequences of demographic trends.

The Effects of Employment Protection legislationon Personnel Policies: A Review of Theoretical Modelsand Empirical results

2014 ◽  
pp. 126-140
Author(s):  
O. Mironenko
Keyword(s):  
Personnel Selection ◽  
Selection Criteria ◽  
Theoretical Models ◽  
Employment Protection ◽  
Empirical Results ◽  
Protection Legislation ◽  
Labour Contracts ◽  
Hiring And Firing ◽  
The Impact ◽  
Personnel Policies

Employers incur costs while fulfilling the requirements of employment protection legislation. The article contains a review of the core theoretical models and empirical results concerning the impact of these costs on firms’ practices in hiring, firing, training and remuneration. Overall, if wages are flexible or enforcement is weak, employment protection does not significantly influence employers’ behavior. Otherwise, stringent employment protection results in the reduction of hiring and firing rates, changes in personnel selection criteria, types of labour contracts and dismissal procedures, and, in some cases, it may lead to the growth of wages and firms’ investments to human capital.

STUDY OF THE IMPACT OF RAISING THE RETIREMENT AGE ON ECONOMIC GROWTH IN THE DIGITAL ECONOMY IN RUSSIA AND EUROPE

2020 ◽  
Author(s):  
Svetlana Apenko ◽  
◽  
Olga Kiriliuk ◽  
Elena Legchilina ◽  
Tatiana Tsalko ◽  
...  
Keyword(s):  
Quality Of Life ◽  
Economic Growth ◽  
Economic Policy ◽  
Labor Relations ◽  
Pension Reform ◽  
Digital Economy ◽  
Institutional Changes ◽  
Retirement Age ◽  
The Impact

The article presents the results of a study of the impact of pension reform in Russia on economic growth and quality of life in a digital economy, taking into account the experience of raising the retirement age in Europe. The aim of the study was to identify and analyze the impact of raising the retirement age on economic growth in the context of the development of digitalization in Russia and a comparative analysis with European countries. Results: the studies conducted allowed us to develop a system of indicators characterizing the impact of raising the retirement age on economic growth and the quality of life of the population in the context of digitalization. The authors found that raising the retirement age leads to a change in labor relations in Russia and Europe. The application of the proposed indicators can be used in the formation of a balanced state socio-economic policy in the field of institutional changes in the field of labor relations and raising the retirement age. The study was carried out under a grant from the RFBR № 19-010-00362 А.

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