Competencies as a factor of economic deactivation

Purpose - The purpose of this paper is to propose the method of measurement of competencies using exploratory factor analysis and the evaluation of the relation between competencies and economic activity of mature people. Design/methodology/approach - The empirical analysis is based on the Study of Human Capital data (conducted in Poland). The study population people are aged 50+. In statistical analysis explanatory factor analysis and logistic regression were used. Findings - Competencies are the crucial factor of professional position and career development. However, older people have often out-dated skills and it results in a higher propensity for economic deactivation. On the other hand, older people are valuable on the labour market due to their experience, knowledge and social skills. The survey results indicate that competencies, measured with using of factor analysis, similarly as health, marital status, place of residence and age are significant determinants of early employment deactivation. Research limitations/implications - Limitation in the evaluation of the risk of economic deactivation factors is the static approach of this analysis. The Study of Human Capital data are the best source of information about competencies of Poles, but its character is not longitudinal. Originality/value - The analysis of mature people’s competencies is very important in the context of extending working life, but the scientific researches in this area are rare. This paper would reduce the knowledge gap on the topic of reasons for older workers’ deactivation in which competencies are included. Application of exploratory factor analysis in this area is unique.