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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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Publisher 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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Related research
Keywords: aging retirement incentives extending working lives

Find related papers by JEL classification:
F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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This page was last updated on 2008-9-29.


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