1 / 25

Early retirement in Denmark and the Netherlands A comparison of push and pull factors Introduction

Center for Comparative Welfare Studies CCWS, Aalborg University Department of Sociology, Tilburg University. Early retirement in Denmark and the Netherlands A comparison of push and pull factors Introduction Trends in labour participation and early exit Push and pull factors - macro - meso

aria
Download Presentation

Early retirement in Denmark and the Netherlands A comparison of push and pull factors Introduction

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Center for Comparative Welfare Studies CCWS, Aalborg University Department of Sociology, Tilburg University Early retirement in Denmark and the Netherlands A comparison of push and pull factors Introduction Trends in labour participation and early exit Push and pull factors - macro - meso - micro Conclusions Wim van Oorschot, Per Jensen

  2. Center for Comparative Welfare Studies CCWS, Aalborg University Department of Sociology, Tilburg University Introduction Early exit by older workers - from solution to problem - Council of Europe aims (Stockholm 2001, Barcelona 2002) International comparative studies - larger N - effects of labour market (push) and incentive (pull) structures - unexplained variance This study - inclusion of a range of other push and pull factors at various levels - N=2: Denmark and the Netherlands

  3. Center for Comparative Welfare Studies CCWS, Aalborg University Department of Sociology, Tilburg University Trends: labour force participation rates Sources: OECD Employment Outlook 1989, 1997, 2004

  4. Center for Comparative Welfare Studies CCWS, Aalborg University Department of Sociology, Tilburg University Trends: fulltime and part-time rates Source: SHARE-data: from table 5A.4 in (Boersch-Supan et al., 2005)

  5. Center for Comparative Welfare Studies CCWS, Aalborg University Department of Sociology, Tilburg University Trends: average exit age 1 Source: from Table II.1, p. 53 in Blöndal and Scarpetta (1998)

  6. Center for Comparative Welfare Studies CCWS, Aalborg University Department of Sociology, Tilburg University Trends: average exit age 2 Source:: NL: CBS-data in SZW (2004) DK: Danmarks Nationale Reformprogram 2005

  7. Center for Comparative Welfare Studies CCWS, Aalborg University Department of Sociology, Tilburg University Trends: pathways of early exit

  8. Center for Comparative Welfare Studies CCWS, Aalborg University Department of Sociology, Tilburg University Push and pull: macro - work opportunity Source: SHARE-data

  9. Center for Comparative Welfare Studies CCWS, Aalborg University Department of Sociology, Tilburg University Push and pull: macro - employability Source: EU Labour Force Survey as presented in Blondal and Scarpetta 1998, Table II.4, p. 57 Source: OECD (2004a)

  10. Center for Comparative Welfare Studies CCWS, Aalborg University Department of Sociology, Tilburg University Push and pull: macro - incentive structure 1 Early pension

  11. Center for Comparative Welfare Studies CCWS, Aalborg University Department of Sociology, Tilburg University Push and pull: macro - incentive structure 1Disability - Unemployment

  12. Center for Comparative Welfare Studies CCWS, Aalborg University Department of Sociology, Tilburg University Push and pull: macro - incentive structure 2

  13. Center for Comparative Welfare Studies CCWS, Aalborg University Department of Sociology, Tilburg University Push and pull: macro - incentive structure 2 Source: EU. (2003). Remain in or withdraw from the labour market? A comparative study on incentives. Brussels: European Commission, DG for Economic and Financial Affairs.

  14. Center for Comparative Welfare Studies CCWS, Aalborg University Department of Sociology, Tilburg University Push and pull: macro - incentive structure 3 OECD (2003) Relative income of households with a head 65+, over period 1983-1994: DK: 73,4% NL: 87,5% Heinrich (2000) ECHP-data Persons 65+ in bottom two deciles of income distribution DK: 47% NL: 22% Poverty rates among persons 65+ DK: 10% NL: 4%

  15. Center for Comparative Welfare Studies CCWS, Aalborg University Department of Sociology, Tilburg University Push and pull: meso Hiring and firing Age discrimination NL: 2004 Act on Equal Treatment by Age, 2003 …. by disability DK:. 2004, age and handicap added to national law that prohibits making distinctions on the labour market. CLA’s comply with 1999 EU Directive on age discrimination. Tradition in DK that the state does not legislate relationships between employees and employers. Is there age discrimination? (European Working Condition Survey 2000) NL: 10% of older workers say ‘yes’ DK: 1% Hiring intensity of older workers (50-64 years) OECD (2005) NL: 0,35 DK: 0,41

  16. Center for Comparative Welfare Studies CCWS, Aalborg University Department of Sociology, Tilburg University Push and pull: meso Pay NL + DK: Min. wage for older workers is the same as for younger workers NL + DK: No government wage subsidies for older workers NL + DK: tax and/or wage subsidy provisions for employers to employ disabled workers Employer’s beliefs and attitudes Dutch employers associate an ageing workforce with rising labour costs, resistance to change, increasing absenteeism, less enthusiasm for new technology, no increase in productivity (Remery et al., 2003). Among Dutch employers the general saying is ‘Who am I to stop an employee if (s)he wants to go on early retirement?’ (Van Dalen & Henkens, 2003) DK …?…employers association has since the late 1980s launched campaigns encouraging their member firms to hire older workers. Among knowledge intensive firms it is increasingly becoming trendy to retain older workers. Not in unskilled manual work places.

  17. Center for Comparative Welfare Studies CCWS, Aalborg University Department of Sociology, Tilburg University Push and pull: meso Employer’s policies for retaining older workers (survey data) Sources: Netherlands (Remery et al., 2003), Denmark (Holt & Joergensen, 2003): (all data from 2000)

  18. Center for Comparative Welfare Studies CCWS, Aalborg University Department of Sociology, Tilburg University Push and pull: meso Objective work conditions European Working Conditions Survey 2000: …there is little difference in the degree to which Dutch and Danish (older) workers report to have been exposed to vibrations of machinery, loud noises, extreme temperatures, damps, dust and fumes, dangerous substances. Employability of older workers EU Labor Force Survey: ‘yes’ to ‘…received some education or training in the past 4 weeks?’ Employed older workers (50-64): DK 14%, NL 12% Unemployed older workers (50-64): DK 14%, NL 6%

  19. Center for Comparative Welfare Studies CCWS, Aalborg University Department of Sociology, Tilburg University Push and pull: micro Job satisfaction and control

  20. Center for Comparative Welfare Studies CCWS, Aalborg University Department of Sociology, Tilburg University Push and pull: micro Retirement preferences Esser (2004) Eurobarometer 2003, >=25 years of age

  21. Center for Comparative Welfare Studies CCWS, Aalborg University Department of Sociology, Tilburg University Push and pull: micro Work ethic European Values Survey (1999/2000) 1 = To fully develop your talents, you need to have a job 2 = It is humiliating to receive money without having to work for it 3 = People who don’t work turn lazy 4 = Work is a duty towards society 5 = Work should always come first, even if it means less spare time (1 = strongly disagree – 5 = strongly agree)

  22. Center for Comparative Welfare Studies CCWS, Aalborg University Department of Sociology, Tilburg University Push and pull: micro Work orientation European Values Survey (1999/2000)

  23. Center for Comparative Welfare Studies CCWS, Aalborg University Department of Sociology, Tilburg University Conclusions Higher participation rates and average retirement ages in DK than in NL Macro level +/- Work opportunity rather similar + DK: Higher educated, better employability + DK: Less attractive incentives: fewer alternative pathways used, lower replacement rates of exit routes, pension income relatively lower Meso level + DK: Less age discrimination + DK: Higher hiring intensity ? DK: Less part-time exit possibilities + DK: More training and education +/- Objective working conditions Micro level + DK: Higher job satisfaction and control + DK: Higher preference ages for retirement + DK: Higher work ethic + DK: More intrinsic work motivation

  24. Center for Comparative Welfare Studies CCWS, Aalborg University Department of Sociology, Tilburg University • All in all • In Denmark • …less push out of work, • and • …less pull into retirement • than in the Netherlands Conclusions

  25. Blöndal, S., & Scarpetta, S. (1998). The retirement decision in OECD countries. Paris: OECD. • Boersch-Supan, A., Brugiavini, A., Juerges, H., Mackenbach, J., Siegrist, J., & Weber, G. (2005). Health, ageing and • retirement in Europe: first results from the Survey of Health, Ageing and Retirement in Europe. Mannheim: • Mannheim Research Institute for the Economics of Ageing (MEA). • Esser, I. (2004). Continued work or retirement? Preferred exit-age in Western-European countries. Stockholm: Swedish • Institute for Social Research SOFI. • EU. (2003). Remain in or withdraw from the labour market? A comparative study on incentives. Brussels: European • Commission, DG for Economic and Financial Affairs. • Euwals, R., Van Vuuren, D., & Wolthoff, R. (2004). Prepensioen en arbeidsparticipatie ouderen. Den Haag: Centraal • Planbureau. • Fouarge, D., Schils, T., & Huynen, B. (2004). To retire or continue working? An analysis of the early retirement behaviour of • Dutch workers. Tilburg: Institute for Labor Studies OSA. • Heinrich, G. (2000). Affluence and poverty in old age: Evidence from the European Community Household Panel. • Differdange: CEPS/INSTEAD. • Holt, H., & Joergensen, M. (2003). Virksomheders sociale engagement: Aarbog 2003. Copenhagen: Institute for Social • Research SFI. • OECD. (2003). Maintaining prosperity in an ageing society. Paris: OECD. • OECD. (2004a). Education at a glance: 2004. Paris: OECD. • OECD. (2004b). Reforming public pensions: Sharing the experiences of Transition and OECD • Countries. Paris: Organisation for Economic Co-operation and Development. • OECD. (2005). Ageing and employment policies: Netherlands. Paris: OECD. • Remery, C., Henkens, K., Schippers, J., & Ekamper, P. (2003). Managing an aging workforce and a tight labor market: • Views held by Dutch employers. Population Research and Policy Review, 22, 21-40. • SZW. (2004). Kabinetsstandpunt: Stimuleren langer werken van ouderen: reactie op aanbevelingen van de Taskforce • Ouderen en Arbeid. Den Haag: Ministerie van Sociale Zaken en Werkgelegenheid (29 april 2004). • Van Dalen, H., & Henkens, K. (2003). De dubbele moraal rond langer werken. ESB (31 Oktober), 514-516. • Wolthoff, R., & Van Vuuren, D. (2004). Prepensioen en de arbeidsparticipatie van ouderen. De Actuaris(November), 16-17. References

More Related