Older Workers in the OECD Labour Market

Abstract

In OECD countries, as a result of demographic changes that lead to slowdown in the growth of economically active population, the use of labour potential of older workers, including pensioners, is becoming increasingly urgent. The importance of this problem increases with the enlargement of this group in the total population. This article aims to analyze the dynamics and cross-country differences in the labour market situation of older workers in OECD countries, developed and transition. Particular attention is paid to the factors under which older workers’ participation in labour market is formed. The methodology of this work is based on institutional analysis of the labour market. The results of the study contribute to the understanding of the participation of certain groups of labour in employment. At the same time, this work is practically oriented, and its results can be used for formulating the population and labour market policy in the Russian Federation. We use the OECD Employment and Labor Market Statistics Database as the main source of statistical information. As results of the study, we state that in the OECD countries, since mid-1990s the older groups has significantly improved their position in the labour market, which is reflected in the growing level of economic activity and employment, lower, in comparison with other age cohorts, unemployment. Thus, the stable trend of the previous three decades was interrupted. At the same time there was a convergence of labour market indicators for male and female older age groups and convergence of official and effective retirement ages, including between gendergroups. Improvement of older workers employment is largely determined by their personal characteristics. Improving the health of elderly cohorts and lengthening the active period of life create conditions for longer working career. Structural changes in the branch and occupational composition of the employed also create favorable conditions for retaining and attracting older workers to the labour market. It would be wrong to link the "successes" of older workers in the labour market with the expansion of part-time employment – most of them work in full-time workplaces. The current policy of the OECD countries is mainly aimed at "pushing away" the employee's retirement age by legislative measures, including rising the retirement age. Still little is being done to create better employment conditions for these groups of labour, including retraining. Increasing the flexibility of the labour market could also contribute to a more active participation of older workers in the economic activity.