Thursday, April 18, 2013

Norway: Labor Participation Rates Increasing for 62- ad 63-Year-Olds after Pension Reform

A report issued by Statistics Norway finds that 62- and 63-year-olds work longer than before, although pension reform allows them to retire at age 62. "Yrkesaktivitet blant eldre før og etter pensjonsreformen" ("Labour force participation among older persons after the Norwegian pension reform") looked at two indicators: One indicator is the change in share of the population who are employees. The second indicator is the share of the employees in a given year who are still employees one year after. This second indicator shows the share of the employees who keeps on working, which was one of the main goals of the pension reform. With respect to the first indicator, the report found:

For several years, even before pension reform was implemented in 2011, the share of the population who are employees has had a certain growth for all one-year age groups from 60 year and above. But the change from 2011 to 2012 shows that all one-year age groups from age 62 and above have had a stronger growth in the participation rate, than persons aged 60 and 61. The growth has been particularly strong for those aged 62 and 63, and this applies for both women and men. Further, the growth has been particularly strong for those with secondary education as their highest level of education.
With respect to the second indicator, the report found:
the share of the employees in one year who are still employees one year after, we present figures for those who go from being 61 to 62 years of age. The results show that there was a stronger growth in the share of the employees who are still employees one year after, from 2011 to 2012 than in the previous three years. The growth was clearly stronger for persons with primary school and secondary school than for people with a higher level of education. Still, the persons with higher education have a higher level number of employees who kept on working.
Source: Statistics Norway Publication Summary (English) (April 4, 2013); SeniorPolitikk.no "Seniorene jobber lenger enn før" (April 8, 2013)

Thursday, April 11, 2013

Study: Working in Mixed-Aged Groups More Likely To Prolong Working Life of Older Workers

The Centre for European Economic Research in Mannheim (ZEW) has released research results that find that of the various measures more and more companies rely on in order to retain older employees—appropriately equipped workplaces, reduced working hours and performance requirements, mixed-age work teams, general training, specific training as well as part-time work for older employees—people nearing retirement age are more likely to continue working if they feel valued and if they work with younger people. Part-time work, on the contrary, is apparently even reducing the employment period of older staff, and all the other measures looked at have no influence at all on older employees' decisions to stay with their company.

In "Specific Measures for Older Employees and Late Career Employment" (ZEW Discussion Paper No. 12-059), authored by Bernhard Boockmann, Jan Fries and Christian Göbel, the ZEW staff used longitudinal data provided by the Institute for Employment Research (IAB) on older employees aged between 40 and 65 from 2002, observing 1,063 West German companies with at least five older employees are being observed. Approximately, 50% of the companies offered at least one measure for older employees: 36% offered part-time work for older employees (allowing them contract extensions on reduced working hours), 18% offered mixed-age work teams where older employees could contribute their experience and younger employees their recent professional knowledge, 17% general training, 5% reduced performance requirements, 4% appropriately equipped workplaces (considering e.g. reduced vision or hearing impairment), and 3% tailor-made training for older employees.

Source: Centre for European Economic Research in Mannheim Press Release (March 13, 2013)