Labor Force participation, care and education among older workers

On Thursday May 24, Netspar will host a taskforce regarding the above mentioned subject at Tilburg University. More information on the program and paper can be found after this.

Working life expectancy in good and poor self-perceived health among Dutch 55- to 65- year old workers with chronic diseases
Dorly Deeg, Astrid de Wind, Maaike van der Noordt, Cécile Boot

In the Netherlands, a series of policy measures were taken to encourage prolonged working. It is likely that also workers with chronic diseases need to continue working despite their health problems. Success of policies aiming at prolonged working is often illustrated by an increase in the average age of leaving employment, but the question arises whether people are working more healthy years, or more unhealthy years. Also, it is an open question to what extent workers with a chronic disease feel unhealthy. This study examines working life expectancy in good and poor self-perceived health of workers with a chronic disease from age 55 onwards, and whether workers who feel unhealthy continue working for longer over the period 1992-2015.

Labor participation among older workers in the Netherlands: Effects of pension incentives, the retirement age, and partial retirement
Tunga Kantarci, Daniel van Vuuren, Jonneke Bolhaar

Higher labor participation is an important policy objective in many western countries, especially in the light of ageing and the sustainability of government finances. In addition to classic policies such as raising the statutory retirement age, flexible combinations of work with first- and second-pillar pension schemes may stimulate participation among older workers. We analyze stated preference data to investigate how pension incentives, the increasing retirement age, and provision of a partial retirement scheme would affect individual retirement choices, in particular working beyond the effective or statutory retirement ages in the Netherlands. Two in five prefer partial retirement over early or delayed full retirement. Individuals more often want to use partial retirement to work longer if the deferred pension income is higher than it would be on an actuarially fair basis. Increasing the retirement age beyond age 65 induces individuals to work part-time instead of full-time. Provision of a partial retirement plan at a retirement age of 63 increases total labor supply by a net amount of 1.5 months. If the wage rate is lower in partial retirement, individuals prefer full retirement. We validate that these stated preferences are representative of both expected and the revealed retirement ages, and type of retirement (partial and full retirement).

Training participation of older workers: supply and demand constraints
Annemarie Keunn, Didier Fouarge, Davey Poulissen


As the retirement age increases while at the same time technological and organisational changes affect the skills demand on the market, it is crucial that older workers keep their skills up to date and that employers invest in the skills of their older employees. However, we observe a declining, but still significant training participation gap between older workers and their younger counterparts. In this paper, we first briefly review the literature on employee and employer related factors that affect the training participation of older workers. We then analyse two stated choice experiments for workers’ and employers’ training choices.

In the first experiment, workers are asked to choose between two training courses that differ with respect to some characteristics. We show that older workers are less likely to choose a course that has to take place in their own time, a course that requires a personal financial contribution or a course that is directed to career orientation and coaching. Irrespective of the features of the course and compared to younger workers, older workers are less likely to actually take the course when this would be offered to them, which is suggestive of a lower willingness to train from the workers’ side.

In the second experiment, employers are asked to allocate a training course with specific features to workers who differ, among other factors, in their age. We find that employers are less likely to assign training to a 60 year-old worker compared to a 30 or 45 year-old worker. This is indicative of a lower willingness to train older workers. However, this age differential can be compensated by older workers when these workers are rated positively on their performance or motivation.

Our findings suggest that both supply and demand factor are responsible for the age gap in training, and that employers positively select on the base of motivation and performance.

Locatie: Tilburg University Seminar Room K834 Warandelan 2 5037 AB Tilburg

Netspar, Network for Studies on Pensions, Aging and Retirement, is a thinktank and knowledge network. Netspar is dedicated to promoting a wider understanding of the economic and social implications of pensions, aging and retirement in the Netherlands and Europe.


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