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Live Longer, Work Longer: Making It Happen in the Labor Market

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Author Info

  • Milan Vodopivec

    (The World Bank, Washington)

  • Primoz Dolenc:

    (University of Primorska, Faculty of Management, Koper, Slovenia)

Abstract

An aging population and the corresponding shrinkage of the labor force will create a significant drag on economic growth and may jeopardize the economic well-being of some of the elderly. Thus working longer is an imperative – but extending working lives has proven difficult, both because workers do not want to work longer and because employers are lukewarm about employing older workers. As measures that can be taken to motivate workers to work longer, the paper proposes providing retirement incentives and attractive, flexible working arrangements. To induce employers to hire old workers, it suggests removing the obstacles imposed by restrictive labor market institutions, an increase in the human capital of workers via life-long learning, and addressing age-discrimination. Chances for extending working lives will also increase as the health of elderly workers is improved.

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Bibliographic Info

Article provided by Institute of Public Finance in its journal Financial Theory and Practice.

Volume (Year): 32 (2008)
Issue (Month): 1 ()
Pages: 65-81

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Handle: RePEc:ipf:finteo:v:32:y:2008:i:1:p:65-81

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Keywords: aging; retirement incentives; extending working lives;

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References

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  1. Macours, Karen & Vakis, Renos, 2008. "Seasonal Migration and Early Childhood Development," Working Paper Series RP2008/48, World Institute for Development Economic Research (UNU-WIDER).
  2. Palacios, Robert & Whitehouse, Edward, 2006. "Civil-service pension schemes around the world," MPRA Paper 14796, University Library of Munich, Germany.
  3. Orazem, Peter & Vodopivec, Milan & Wu, Ruth, 2004. "Worker Displacement During The Transition: Experience From Slovenia," Staff General Research Papers 12032, Iowa State University, Department of Economics.
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  8. Louis S. Jacobson & Robert J. LaLonde & Daniel G. Sullivan, 1993. "Long-term earnings losses of high-seniority displaced workers," Economic Perspectives, Federal Reserve Bank of Chicago, issue Nov, pages 2-20.
  9. Ruhm, Christopher J, 1990. "Bridge Jobs and Partial Retirement," Journal of Labor Economics, University of Chicago Press, vol. 8(4), pages 482-501, October.
  10. Vodopivec, Milan & Dolenc, Primoz, 2008. "Live longer, work longer : making it happen in the labor market," Social Protection Discussion Papers 42471, The World Bank.
  11. Peracchi, Franco & Perotti, Valeria & Scarpetta, Stefano, 2007. "Informality and social protection : preliminary results from pilot surveys in Bulgaria and Colombia," Social Protection Discussion Papers 41541, The World Bank.
  12. Lori G. Kletzer & Robert W. Fairlie, 2003. "The long-term costs of job displacement for young adult workers," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 56(4), pages 682-698, July.
  13. Milazzo, Annamaria & Grosh, Margaret, 2008. "Social safety nets in World Bank lending and analytical work : FY2002 - 2007," Social Protection Discussion Papers 44730, The World Bank.
  14. Muenz, Rainer, 2007. "Aging and demographic change in European societies : main trends and alternative policy options," Social Protection Discussion Papers 39174, The World Bank.
  15. Romain Duval, 2003. "The Retirement Effects of Old-Age Pension and Early Retirement Schemes in OECD Countries," OECD Economics Department Working Papers 370, OECD Publishing.
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