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Labour-Market Outcomes of Older Workers in the Netherlands: Measuring Job Prospects Using the Occupational Age Structure

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  • Bosch, Nicole

    ()
    (CPB Netherlands Bureau for Economic Policy Analysis)

  • ter Weel, Bas

    ()
    (CPB Netherlands Bureau for Economic Policy Analysis)

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    Abstract

    This paper analyses changes in job opportunities of older workers in the Netherlands in the period 1996-2010. The standard human capital model predicts that, as a result of human capital obsolescence, mobility becomes more costly when workers become older. We measure and interpret how changing job opportunities across 96 occupations affect different age and skill groups. Older workers end up in shrinking occupations, in occupations with a lower share of high-skilled workers, in occupations facing a higher threat of offshoring tasks abroad, more focus on routine-intensive tasks and less rewarding job content. This process is not only observed for the oldest group of workers, but for workers aged 40 and above. Observing older workers in declining occupations is to a large extent a market outcome, but declining job opportunities in terms of less satisfying working conditions and job tasks and content could potentially raise incentives to retire early.

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    Bibliographic Info

    Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7252.

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    Length: 30 pages
    Date of creation: Feb 2013
    Date of revision:
    Publication status: published in: De Economist, 2013, 161 (2), 199-218
    Handle: RePEc:iza:izadps:dp7252

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    Keywords: employment; occupational mobility; older workers;

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    References

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    Cited by:
    1. Kok, Suzanne & ter Weel, Bas, 2014. "Cities, Tasks and Skills," IZA Discussion Papers 8053, Institute for the Study of Labor (IZA).
    2. Suzanne Kok & Bas ter Weel, 2014. "Cities, Tasks and Skills," CPB Discussion Paper 269, CPB Netherlands Bureau for Economic Policy Analysis.
    3. Dalen, H.P. van & Henkens, K., 2013. "Dilemmas Of Downsizing During the Great Recession: Crisis Strategies of European Employers," Discussion Paper 2013-026, Tilburg University, Center for Economic Research.

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