Eficiencia ageing and labour market: An analysis ofthe determinants of labour force participation atlate age

• Autores: Ana Poças
• Localización: Anales de Economía Aplicada 2018: economía del transporte y logística portuaria / coord. por Juan José García del Hoyo, 2020, ISBN 978-84-18280-49-8, págs. 602-611
• Idioma: inglés
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• Resumen

  • The deepening of an ageing process associated with the ageing of the labour force is a common issue to the mostdeveloped countries and a major concern for European politicians. In fact, higher average ages of the working forcemay have negative consequences on resistance to change or capacity to innovate, which is the driving force ofeconomic growth. On the other hand, the natural process of biological deterioration associated with ageing causesincapacity and absenteeism with negative impacts on productivity. Moreover, an ageing society raises manyeconomic and social challenges.As a consequence of a higher life expectancy many governments have adjusted their retirement systems so peoplehave to work after 65 years old in line with an active population strategy. However, in spite of the significant increasein employment rates at late age in recent years, there are still persistent differences across European countries. Infact, the decision of a worker participating or leaving the labour market is a very complex one depending on financial,educational and health status, among other factors. With this paper our aim is to analyse in a macroeconomicperspective the determinants of labour force participation at late age (60-64 years old) in European countries.Socioeconomic factors and health status are defined as the main determinants of labour force participation. We usea panel data model for 18 European countries for the 1995–2015 period and fixed effects methods. Our resultsshow that income and poverty risk are the most important factors affecting positively labour force participation atlate age. A poorer health status is also an important predictor of labour participation, assuming a negative andstatistical significant impact. Although with the expected positive impact on employment at late age higher educationhas no statistical significance.