Underemployment among Mature‐Age Workers in Australia

Abstract

Underemployment is a serious and pervasive problem both in terms of its impact on those individuals affected, and for the economy as a whole. Underemployment is associated with job insecurity, increased casualisation and lower savings, and from a macroeconomic standpoint, underemployment is a signal of inefficiency in the utilisation of skilled labour. This article explores the patterns of underemployment for mature-age workers in Australia, a group for whom the prevalence of long spells of underemployment is especially marked. The research uses a 12-year panel dataset to analyse factors that contribute to a heightened risk of underemployment. Significant path dependency is revealed, whereby previous periods of underemployment increase the propensity towards further underemployment in the current period. Interestingly, most demographic and socioeconomic characteristics, except for the presence of older dependent children and a non-English-speaking foreign-born background for women, tend not to have any direct impact on the propensity for underemployment. These findings suggest the need for targeted interventions to triage these barriers aimed at highlighting the role of improved labour market attachment in promoting the well-being and economic contribution of mature-age workers.

A gendered approach to workforce participation patterns over the life course for an Australian baby boom cohort

“…We found that partnered women and men were less likely to have decreasing full time work, as compared to mostly full time work. The findings of international and Australian studies by Gerber et al(2009), Huang et al(2007), Haider and Loughran (2001) and Li et al(2013) are in agreement with ours, that partnered women were more likely to be in some paid work. However some Danish, Norwegian and US researchers reported that women with partners were less likely to continue working in later years (Dahl et al, 2003;Larsen & Pedersen, 2013;Ruhm, 1996).…”

“…Among the many challenges of population ageing, workforce participation of mature age workers and its associated economic and financial implications are of major concern to governments and have been widely discussed (Australian Treasury, 2010;European Commission, 2000;Li, Duncan, & Miranti, 2013).…”

“…Dahl et al (2003), Larsen & Pedersen (2013) and Ruhm (1996) found that partnered women were less likely to remain in work at later ages; while partnered men were more likely to participate in the workforce. In contrast, Li et al (2013) and Haider & Loughran (2001) Hockey, & Dobson, 2008;Ruhm, 1996;Spoehr et al, 2009;Temple et al, 2011). Bittman et al (2004), Gray et al(2008) and Spoehr et al(2009) reported caring as a particular issue for women who are the primary care givers for sick or disabled family memebers.…”

The Ageing Workforce: Policy Dilemmas and Choices

“…Ideally, flexibility should enable both reductions and increases in work hours. Stepping down from full-time to part-time work is a common way to achieve flexibility, yet many older workers in part-time positions want more hours and feel trapped in a cycle of under-employment (Li et al 2015).…”

Where Are the Returns to Lifelong Learning?

“…We expand considerably on this study by investigating additional labour market outcomes over a longer time period, and allow for differential time trends across participants and non-participants. Li et al (2015) also employ HILDA data in their study of underemployment and labour market trajectories of mature age Australian workers. 5 Griliches (1980), Marcus (1984), Light (1995) and Leigh and Gill (1997) study the effect of delaying entry to university using US panel surveys of young adults.…”