Towards More Inclusive Ageing and Employment Policies: The Lessons from France, The Netherlands, Norway and Switzerland

Abstract

Many countries have carried out over the past decade a series of reforms and measures to encourage longer working lives and to respond to the looming challenges of rapid population ageing. But have these steps gone far enough and have the necessary measures been taken? Much of the focus of this policy action has been on old-age pension reform but, as stressed in the report Live Longer, Work Longer (OECD 2006), a more comprehensive set of reform may be necessary to encourage work at an older age. This includes policy action in three broad areas to: (1) reward work, (2) change employer practices, and (3) improve the employability of workers. The aim of this paper is to provide an overview of recent policy initiatives to give older people better work incentives and choices implemented in France, The Netherlands, Norway and Switzerland since 2006 as well as to identify areas where more could be done, covering both supply-side and demand-side aspects.

Getting grey hairs in the labour market. An alternative experiment on age discrimination

“…During the past decade many countries have carried out reforms in this direction. Sonnet et al (2014) review that these reforms have improved the labour market situation of older workers. Still, activity rates among the older age groups are relatively low, especially in Europe.…”

“…While traditionally policy discussions have focussed only on supply-side factors, policy attention has recently shifted more and more to the latter channel, better known as discrimination (Sonnet et al, 2014). In this study we focus on the estimation of age discrimination at the moment at which it is the least risky for employers and therefore the most likely to occur, i.e.…”

Job search requirements for older unemployed workers

“…In the case of the Netherlands it is shown that job-finding rates are close to zero after two years [1]. Evidence shows that the incidence of long-term unemployment among older workers is relatively high, and that mismatch of skills is a possible reason for long-term unemployment [13]. Similarly, job search can only be effective if it leads to an employee−employer match.…”

“…Similarly, job search can only be effective if it leads to an employee−employer match. Restrictions at the demand side of the labor market limit the chance that a match will be established [13].…”

“…At the same time, it is important to realize that the demographic composition of the population today is very different from the 1980s, and empirical evidence that the exit of older workers from the labor force leads to jobs for younger generations is lacking. An overrepresentation of older workers among the long-term unemployed cannot solely be attributed to a lack of search effort on their part and a long period of unemployment insurance benefit entitlement [13]. Employers typically face a tradeoff between wages and productivity, both of which depend on age.…”