Last Sunday, Poland's ruling Law and Justice Party bucked the European trend by lowering the country's retirement age to 60 for women and 65 for men. The legislation reverses the changes approved in 2012 to raise the age to 67, reflecting moves across the continent to gradually increase the retirement age as workers live longer and stay healthier.
René Böheim warns against policies that would seek to lower retirement ages, observing that “Higher employment for older workers coincides with higher employment for younger workers… Lowering the retirement age decreases the incentives to train and to invest in additional skills, and therefore leads to lower economic growth.”
Carol Graham suggests that flexible arrangements and retirement options are a potential solution for the challenges of unemployment, aging populations, and unsustainable pension systems. “Late-life workers ... under voluntary part- or full-time arrangements, have higher levels of well-being (in some dimensions) than retirees. Higher levels of well-being are in turn associated with better health and greater productivity, suggesting that the benefits of such arrangements could extend beyond the individual to society".
Wage subsidies may not help to increase employment among older workers
As populations age in industrialized countries, the labor market participation of older workers becomes increasingly important—not only in order to safeguard the financing of public pension systems, but also to maintain a sufficiently large workforce. Over the last two decades, employment rates among the population aged 50 and above have increased in most industrialized countries. This has mostly been due to longer employment relationships. But it remains particularly difficult to integrate older workers back into work once they have moved into unemployment or non-participation. Continue reading.
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IZA Workshop: Labor Productivity and the Digital Economy, October 30-31. The aim of this workshop is to bring together researchers analyzing wider labor market impacts of the digital economy, i.e. how these technological changes have directly and indirectly affected the world of work, in particular labor productivity.