Catherine Pollak Centre d’économie de la Sorbonne ( University Paris 1 Panthéon-Sorbonne)

1. Employed and Happy Despite Weak Health?Job Quality and Labour Market Participation of Older Workers in Europe Catherine Pollak Centre d’économie de la Sorbonne (University Paris 1 Panthéon-Sorbonne)

2. Employment rates of older people in Europe (55-64 yearold) JQ and LMP of OlderWorkers in Europe - Catherine Pollak (Centre d'économie de la Sorbonne) – OECD 2011

3. Job satisfaction of older workers JQ and LMP of OlderWorkers in Europe - Catherine Pollak (Centre d'économie de la Sorbonne) – OECD 2011

4. Olderworkerswithdisabilities JQ and LMP of OlderWorkers in Europe - Catherine Pollak (Centre d'économie de la Sorbonne) – OECD 2011

5. Research question • Why do some countries perform better in terms of labour market participation of older workers despite higher levels of disabilities? • A possible explanation : job quality • Hypothesis: Better job quality enables ageing workers with disabilities to remain employed JQ and LMP of OlderWorkers in Europe - Catherine Pollak (Centre d'économie de la Sorbonne) – OECD 2011

6. What do we know? • Job quality matters to preserve health Impact of work related psychological conditions on functional impairments - jobstrain (demand-control/support) model (Karasek, Theorell, 1990) - effort-reward imbalance (Siegrist, 1996) • Job satisfaction and health matter to stay employed Impact of self reported health and job satisfaction on labour market behaviour of older people: • intended retirement (Blanchet, Debrand, 2007) • early retirement (Debrand, Sirven, 2009) • Job satisfaction rankings: Northern countries > Conti > Med countries • In accordance with international rankings on employment/job quality (objective indicators) • What is less known: • What about ageing workers with disabilities? Do they benefit from better job quality in some countries? Can this explain why they stay longer on the labour market? JQ and LMP of OlderWorkers in Europe - Catherine Pollak (Centre d'économie de la Sorbonne) – OECD 2011

7. Method 1. Does job quality increase labour market participation at older ages? Selective effects of health and job quality on the labour market: -> Labour market model (Heckman probit) 2. Do disabled people have better access to quality jobs in “good” performing countries? Country differences in proving good working conditions (rewards): -> Compensation model (ordered logit) • Data SHARE (Survey of Health, Ageing and Retirement in Europe) International: Austria, Belgium, Denmark, France, Germany, Greece, Italy, the Netherlands, Spain, Sweden, Switzerland Micro-data: Individuals 50+ Longitudinal: 2004 (wave 1), 2006 (wave 2) Multidisciplinary: Health, Economic, Social JQ and LMP of OlderWorkers in Europe - Catherine Pollak (Centre d'économie de la Sorbonne) – OECD 2011

8. Step 1. Labour market model: estimation process Does job quality increase labour market participation at older ages? • Outcome equation: Sample: 50-64 year old in wave 1 and employed (for working conditions) (N= 4.688) Dep. Var (y): Outcome in wave 2: y=1 if employed in 2006, 0 else Job quality indicators: job satisfaction, efforts and rewards Controls: distance to legal retirement age, employment status, occupation, type of contract, working time, country • Selection equation: Sample: 50-64 year old in wave 1 (N= 8.587) Dep. Var (z): Selected in wave 1: z=1 if employed in 2004, 0 else Controls: age, gender, education, household income, family situation, country • Two functions estimated jointly to control for selection effects if (Heckman, 1979) JQ and LMP of OlderWorkers in Europe - Catherine Pollak (Centre d'économie de la Sorbonne) – OECD 2011

9. Labour market model (selection equation results) JQ and LMP of OlderWorkers in Europe - Catherine Pollak (Centre d'économie de la Sorbonne) – OECD 2011

10. Labour market model (outcome equation results) JQ and LMP of OlderWorkers in Europe - Catherine Pollak (Centre d'économie de la Sorbonne) – OECD 2011

11. Step 1. Labour market model : results • Selection (being employed in wave 1): • Healthy worker effect: disabilities (severe or moderate), low self reported health, low mental health, and having chronic diseases decrease the likelihood of being employed • Outcome (staying employed between wave 1 and 2): • Health (SRH and severe limitations) still has an impact on staying employed • Job satisfaction, but also identifiable aspects of good job quality (rewards), increase the likelihood of staying employed • Conclusion: Health and job quality (rewards) have a selectiveeffect on labour market participation of olderworkers JQ and LMP of Older Workers in Europe - Catherine Pollak (Centre d'économie de la Sorbonne) – OECD 2011

12. Step 2. Compensation model: estimation process Do disabled people have better access to quality jobs in “good” performing countries? • Assumption (cf. demand-control-support model, effort-reward model) : Monetary and non monetary rewards can compensate for psychological and physical demands (efforts) and the imbalance between these two dimensions increases the risk of job strain and physical illness • Estimation equation Pooled sample: 50-64 y. old in wave 1 and employed (N=4.610) Disabled sample: 50-64 y. old in wave 1 and employed, with disabilities (N=1.183) Dep. Var (y=0,…,7): Rewards = salary + skill development + social support + recognition + decision latitude + advancement prospects + job security International comparison: country dummies Controls: Efforts (job physically demanding, constant time pressure), health, and individual and job characteristics (age, gender, education, employment status, occupation, term of contract, tenure, firm size) JQ and LMP of OlderWorkers in Europe - Catherine Pollak (Centre d'économie de la Sorbonne) – OECD 2011

13. Step 2. Compensation model: results JQ and LMP of OlderWorkers in Europe - Catherine Pollak (Centre d'économie de la Sorbonne) – OECD 2011

14. Discussion • Self-reported health and job satisfaction, but also disabilitiesand good working conditions (i.e. rewards) are important individual determinants for ageing workers to participate on the labour market • There are substantial differences in terms of job quality between countries: • intensity of rewards is lower in Mediterranean countries (GR, IT, FR, and to a lower extent ES) and Austria • and higher in Northern countries (NL, DE, DK, and SW) • …especially for older workers with disabilities: • Disabled workers are more likely to be compensated by non monetary rewards (such as training, advancement opportunities, and support in difficult situations) in Continental and Northern countries compared to Mediterranean countries • Policy implications: • Better job quality should not only be expected to be the positive outcome of a longer and less intense work life. • Active and Healthy Ageing strategies: Job security and monetary incentives may not be sufficient (further training, flexible work arrangements, health at work) JQ and LMP of OlderWorkers in Europe - Catherine Pollak (Centre d'économie de la Sorbonne) – OECD 2011

15. Step 2. Compensation model: further results Sample: 50-64 year old, employed ,and declaring disabilities Note: * p<0.10, **p<0.05, ***p<0.01 Dependent variables are coded from 1 (lowest) to 4 (highest) JQ and LMP of OlderWorkers in Europe - Catherine Pollak (Centre d'économie de la Sorbonne) – OECD 2011

16. Job quality variables JQ and LMP of OlderWorkers in Europe - Catherine Pollak (Centre d'économie de la Sorbonne) – OECD 2011

17. Employment rates and disability JQ and LMP of OlderWorkers in Europe - Catherine Pollak (Centre d'économie de la Sorbonne) – OECD 2011

18. Effort and reward at work by Country JQ and LMP of OlderWorkers in Europe - Catherine Pollak (Centre d'économie de la Sorbonne) – OECD 2011

19. Labour market model (selection equation results) JQ and LMP of OlderWorkers in Europe - Catherine Pollak (Centre d'économie de la Sorbonne) – OECD 2011