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Calling older workers back to work

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  • Francesco Grigoli
  • Zsoka Koczan
  • Petia Topalova

Abstract

Population ageing in advanced economies could have significant macroeconomic implications, unless more individuals choose to participate in labour markets. In this context, the steep increase in the share of older workers who remain economically active since the mid-1990s is an overlooked yet encouraging trend. We identify the drivers of the rise in participation of the elderly relying on cross-country and individual-level data from advanced economies over the past three decades. Our findings suggest that the bulk of the increase in their participation is driven by gains in educational attainment and changes in labour market policies, such as the tax benefit system, and pension reforms. Urbanization and the increasing role of services also contributed, while automation weighed on their participation.

Suggested Citation

  • Francesco Grigoli & Zsoka Koczan & Petia Topalova, 2022. "Calling older workers back to work," Applied Economics Letters, Taylor & Francis Journals, vol. 29(6), pages 559-566, March.
    • Handle: RePEc:taf:apeclt:v:29:y:2022:i:6:p:559-566
    DOI: 10.1080/13504851.2021.1876205
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    More about this item

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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