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Towards enduring participation: investments in human capital and care Joop Schippers The Hague, June 4, 2004

Arbeids- en Emancipatie-economie. Towards enduring participation: investments in human capital and care Joop Schippers The Hague, June 4, 2004. Arbeids- en Emancipatie-economie. Three challenges: reduce the overload during the middle stage of life

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Towards enduring participation: investments in human capital and care Joop Schippers The Hague, June 4, 2004

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  1. Arbeids- en Emancipatie-economie Towards enduring participation: investments in human capital and care Joop Schippers The Hague, June 4, 2004

  2. Arbeids- en Emancipatie-economie • Three challenges: • reduce the overload during the middle stage of life • combat under utilisation during the active old age • maintain and accumulate human capital during all stages of life

  3. Arbeids- en Emancipatie-economie • Current life course policy: • leave/consumption oriented • no incentives to invest in human capital • beneficial for high income groups only

  4. Arbeids- en Emancipatie-economie • Three threats to human capital investments …. • increasing labour market flexibility • ageing of the labour force • rapid technological change

  5. Arbeids- en Emancipatie-economie • …. resulting in: • less accumulation of experience • less investment in on-the-job training • less ‘new knowledge’ • more/faster depreciation

  6. Arbeids- en Emancipatie-economie • Effective life course policy • integrates investments in care and human capital • promotes working more hours over the life cycle • includes women and men and all income groups

  7. Arbeids- en Emancipatie-economie • Effective life course policy • balances the interests of workers, employers and the government • asks something of each party and offers something in return

  8. Arbeids- en Emancipatie-economie • Workers • benefits: child care, leave, facilities for human capital investments • costs: time/energy for HC-investments, postpone retirement (but better work)

  9. Arbeids- en Emancipatie-economie • Employers • costs: workers on leave • benefits: increase in labour supply, better qualified => more innovation, shared responsibility for HC-investment

  10. Arbeids- en Emancipatie-economie • Government • benefits:higher participation women and older workers, knowledge based society • costs: facilities for investments in care and human capital

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