The economic activity of people aged 50+ in Europe: Results from the NEUJOBS project
One of the crucial factors influencing long-term economic growth in Europe is the size and quality of its future labor force: the size of the working-age population, the labor force participation rate and labor productivity. In fact, the financial stability of many social systems, including the pension system and health care system, depends on demographics and the number of future contributors.
CASE – Center for Social and Economic Research and the Institute for Structural Research are Polish partners participating in the international research project NEUJOBS (www.neujobs.eu), financed by the European Commission under the 7th Framework Programme. The aim of the project is to analyze and forecast changes on the European labor market(s) in the face of demographic, social and economic changes.
The seminar, which took place on January 13th, 2014, at CASE headquarters in Warsaw, was organized with a view to present and enable discussion on the results of research on the impact of population aging on the labor market and the situation of women in the European labor market. Guests were welcomed and introduced to the NEUJOBS project by a Member of the CASE Management Board, Izabela Styczyńska. Subsequently, dr Iga Magda (IBS, SGH), PhD, Anna Ruzik-Sierdzińska, PhD (CASE, SGH), Maciej Lis (IBS) and Agnieszka Chłoń-Domińczak, PhD (SGH, IBE), gave presentations on the results of the research conducted.
Dr Magda showed that, in the period 1990-2011, women's employment rates have increased in almost all EU countries, which accounted for most of the employment growth in Europe. Poland varied from the rest of the EU in that, although there was a significant increase in the employment of women aged 25-54, the improvement in the oldest age group was rather insignificant. She also discussed the gender wage gap (which in most EU countries increases with workers’ age), as well as the impact of part-time work and fixed-term contracts on women’s remuneration. Subsequently, Dr Ruzik-Sierdzińska discussed the ways in which lifelong learning could help to sustain higher economic growth in the future. Estimations showed that participation of workers aged 50 + in training results in the growth of their earnings by as much as 6.5%. This impact was found to be greater in the countries of southern and continental Europe and lower in the Nordic countries, even though the elderly tend to participate in education more often in the latter countries. At the same time, a higher expected retirement age makes investments in training more beneficial and cost-effective, from the point of view of both employers and employees.
During the second part of the seminar, Maciej Lis showed that the countries with the highest rates of economic activity owe their success to preventing people aged 50+, including low-skilled workers, from leaving the job market too early. In countries with high employment rates, people, including individuals aged 45 years and over, generally tend to have longer career paths and switch jobs more often. Extending the period of economic activity therefore requires increased mobility rather than employment stability. Dr Chłoń-Domińczak presented estimates of the pension gap in Europe, i.e. the differences between women’s and men’s pension benefit. The gap depends on the situation of each gender on the labor market (wages, employment rates) and on the shape of the pension system (retirement age, the retirement formula). She also demonstrated that changes in labor market and pension policies aimed at the aging population affect men and women in different ways.
During the discussion, panelists and guests debated the importance of policies supporting women in combining work and family and the role they play in increasing women’s economic activity. Moreover, it was suggested that health is an important factor influencing one’s professional activity and, as such, should be included in the analysis.
The seminar was attended by representatives of NGOs and governmental bodies, such as the Central Institute for Labor Protection - National Research Institute (CIOP-PIB), the Foundation for Social and Economic Initiatives (FISE), the Foundation for the Development of the Education System, the Bureau of Social Policy of NSZZ “Solidarnosc”, the Centre for the Advancement of Women Foundation, Employers of Poland, the Voivodeship Labor Office, the Women+ Foundation, the “Jesienny usmiech” Foundation, the Trade Unions Forum, and the “Nowy Swiat Kobiet” Foundation.
In order to receive information on all CASE events, please subscribe to our mailing list!
We also encourage you to find out more about the NEUJOBS project and download our publications "Age and Productivity. Human Capital Accumulation and Depreciation" and "The impact of institutional and Socio-Ecological Drivers on Activity at Older Ages", which can be found here.
