Is Swedish pension reform the right medicine for aging Europe?

Following the Second World War, the idea of the life course with distinct periods of education, work, and retirement became popular as a result of the alliance of interests of unions and management, with politicians seizing the opportunity to accommodate them. These "social partners" implemented benefit rules and created practices for using old age and disability to ease the exit of older workers. Although justifiable at the time, now those rules and practices hinder individual and employer incentives to invest in human capital and work environments that enable older workers to remain in the workforce. The article argues that the workforce environment of the coming half-century, which is relevant for persons born around 2000, is much different from that a hundred years earlier, which determined the opportunities for people born around 1900. People are healthier and live much longer and work environments are friendlier. The article argues that it is no longer justifiable to subsidize exit from the workforce around the age of 60 for healthy workers, especially in view of the coming labor shortage in Europe. It also argues that the introduction of the principles of the Swedish NDC pension reform in Europe would provide possibilities for flexible exit from the workforce and remove impediments to labor mobility in Europe, which are embedded in many of Europe's present pension arrangements.     

Employment Trajectories Beyond Retirement

Within the political and academic debate on working longer, post-retirement employment is discussed as an alternative to maintain older workers in the labor market. Our article enhances this discussion by studying determinants of transitions into post-retirement jobs within differing work environments of birth cohorts 1940–1942. We estimate proportional subhazard models accounting for competing risks using unique German social security data linked to pension accounts. Our findings suggest that individuals’ preferences to take up post-retirement jobs are not mutually exclusive. Our study provides evidence that taking up post-retirement jobs is related to seeking financial security, continuity, and work ability, suggesting that public policy has to develop target-oriented support through a public policy mix of different measures aligned to the different peer groups in the labor market.     

Older Workers: The ‘Unavoidable Obligation’ of Extending Our Working Lives?

Older workers are becoming an increasing topic of research interest and policy concern as the populations of Europe, the United States and many other countries age. Some commentators argue that living longer means that there will be an ‘unavoidable obligation’ to work for longer as well. This article considers the reasons for concern about an ageing workforce. It then looks at the different literatures, which seek to research and understand the position of older workers. It provides a snapshot of the work that those over 50 years of age in the UK currently do and poses the question of whether we want to work for longer or whether a culture of early retirement prevails. It concludes by arguing for a more fine grained understanding of the composition of the older worker cohort, differentiated by class, gender and race and for more research on flexible work, gradual retirement and managing health at work.     

Union-management solutions for preventing workplace injury of older workers

As the US workforce continues to age, organized labor and management will have to work creatively to redesign jobs, workflow, and work pace to accommodate older workers. Union-management cooperation in developing safety strategies have been largely unsuccessful because of mutual distrust, animosity left over from contract negotiations and administration, the absence of strong labor legislation that promotes shared governance, injury concealment, and world-wide competitive pressures to reduce labor costs at the expense of worker safety. If workplace injury prevention that focuses on cost-effective and efficient workplace modifications for older as well as for all workers is to become reality, then employers and their unions will need to develop solutions to forge new, more expansive approaches to accommodation.     

Aging on the job

The older population is growing faster than the population as a whole. Paid work is the main mechanism for physical activity in humans. We, therefore, wanted to ascertain whether work practices (such as employment status and the types of tasks workers perform) follow the biological decline in physical activity that occurs with aging in humans and many other species. We recorded work practices in 3352 adults in the Ivory Coast to establish how work burdens are distributed across different age groups in a community that is minimally fettered by legal constraints. We found a decrease in the amount of work performed with increasing age, and we found that elderly persons performed more skilled, less exothermic tasks than younger workers. These data mirror global workforce distribution trends expressed by age. If the trend continues, a major portion of the population will be unlikely to contribute to the labor force in the near future, producing potentially adverse economic consequences in some populations. Although the problem might be averted or at least minimized by implementing different employment policies, biological factors could overlay and supervene any economic planning.     

Working Longer May Be Good Public Policy,But It Is Not Necessarily Good for Older People

Older people are facing a changed set of expectations regarding work and retirement. Until quite recently early retirement was being encouraged. Today's older workers, however, are contemplating longer working lives amid policy concerns about the costs of social welfare associated with an aging population. While working longer is, almost universally, being promoted as a social and individual good this article argues that this policy shift is unlikely to change the situation of many older workers who would have needed to continue working anyway. It also argues that the emphasis on prolonged employment undervalues engagement in activities beyond employment. As well, it argues that the emphasis on prolonging employment neglects to account for the attendant risks for many of continuing to work or having to seek work and the potential health- and well-being-enhancing effects of retirement.     

Changes in Firm Pension Policy: Trends Away from Traditional Defined Benefit Plans

In light of the recent concerns regarding the solvency of Social Security’s Old-Age, Survivors and Disability Insurance (OASDI), private pensions may play an increasingly important role in retirement welfare of US retirees. However, the private pension landscape has evolved in ways that may result in lower private pension wealth for retirees. One recent such phenomenon involves the conversion of traditional defined benefit pension plans to cash balance plans, which results in lower pension benefits for many workers. In this study, I investigated how characteristics of the firm’s workforce influenced whether the firm converted their traditional pension plan to a cash balance plan and how these characteristics related to the firm’s pension plan policy more generally. Using the Longitudinal Employer-Household Data and pension plan data from the Department of Labor/Internal Revenue Service and the Pension Benefit Guaranty Corporation, I found little evidence of workforce age distribution effects on the likelihood of DB plan conversion to a cash balance plan in the 1990s. More generally, I consistently found positive associations between firms with older and more female workforces and defined contribution plans during the same time.     

The retirement behavior of workers covered by union and nonunion pension plans

Previous authors have noted that there are significant differences between the provisions of union and nonunion pension plans. I present evidence that sheds light on two hypotheses. The first (Parsons, 1983) posits that union pensions should encourage earlier retirement because productivity falls as workers age, but union rules prohibit firms from lowering wages. The second (Freeman, 1985) argues that union pension plans reflect the preferences of older, more senior workers. I find some support for both hypotheses. I conducted some of the research for this paper as an economist with Unicon Research Corporation. I thank the National Institute on Aging for funding (grant number 5 RO1 AG06133-03). I also thank Fran Horvath, Mark Kennet, Mark Loewenstein, Bob McIntire, Tom Plewes, Bill Wiatrowski, and three anonymous referees for useful comments. All views and opinions expressed herein are the author's and do not necessarily reflect those of the Bureau of Labor Statistics, the National Institute on Aging, or Unicon Research Corporation.     

Older workers’ employment in dynamic technology changes

Discrimination against older workers and the higher barriers for entrance to the workforce that these workers face are well documented in the literature. This situation becomes even worse when technological changes take place. In this paper the different responses of younger and older workers to those technological changes were analyzed, and it was revealed that older workers can be severely harmed when such changes occur. It was found that providing a subsidy for older workers could aid in reducing the unemployment among older workers, together with increasing growth of the economy and decreasing the inequality of income distribution.     

Addressing gender discrimination in Vietnam's light manufacturing industry: What role for labor law?

This paper explores women workers’ experiences of gender discrimination at work in Vietnam and whether labor law might enable them to challenge discriminatory practices. Interviews with workers reveal how discrimination is generated and entrenched through seemingly neutral workplace rules and culture. The coercive and intensive nature of assembly work has deterred or prevented working mothers from enjoying fair and decent work. Survey findings on female workers’ mobilization of the law suggest that women who have experienced discrimination in the past are less inclined to choose a legal means when faced with future discrimination. In most cases, women would choose not to take any action or opt for a non-legal means to raise their voices. In conclusion, even though women workers in general do not consider law a potential tool to tackle discrimination, they have absorbed and appropriated the language of the law to make sense of unfair practices at work.     

Age-Friendly Organisations: The Role of Organisational Culture and the Participation of Older Workers

Population ageing is a global phenomenon that has become prominent in international discourse over the past few decades. This discussion is often coupled with the economic implications of population ageing through reduced workforce participation of the older age group, increased government spending on health and pensions and reduced government income from taxes. A means of mitigating the economic costs of ageing is to lift the proportion of older individuals in the workforce and prolong working lives. This brings to the forefront an important point regarding the need for organisations to undertake changes so as to better enable the employment of older individuals and to cater for an ageing workforce. This article critically reflects on age-friendly organisational practices that can have an impact on the recruitment and retention of older individuals. It further contends that there is a need to develop a deeper understanding of factors that constitute an organisational culture geared towards the older demographic, in order for strategies and practices directed at older workers to be effective. Through this argument, the authors consolidate the literature on age-friendly organisational practices and propose a conceptual model of an age-friendly organisational culture, drawing from both functionalist and interpretivist paradigms.     

WOMEN'S ACCESS TO PENSIONS AND THE STRUCTURE OF ELIGIBILITY RULES:

Because many older women lack access to private pensions and rely solely on social security income, they are significantly more likely than men to have incomes below or near poverty level. Liberal feminists attribute women's failure to attain pensions to their discontinuous work histories, which preclude them from meeting requirements for length and continuity of service. Such a conclusion ignores the invisible gender-based distinctions arising from the organizational logic of the workplace. The key issue is not why women fail to satisfy pension rules but rather why the rules are structured to penalize women for their reproductive labor. This historical case study of the pension negotiation process in two unions, the United Auto Workers and the International Ladies Garment Workers Union, indicates that the price women pay in the market for their domestic labor is a social construction that arises from specific decisions in the workplace. The analysis suggests that women can improve their status relative to men if they are able to reveal the hidden dimensions of gender in societal institutions but that they cannot attain full equality until the distinction between social production and reproduction is eliminated.     

Local Produce,Foreign Labor: Labor Mobility Programs and Global Trade Competitiveness in Canada*

Abstract Temporary visa workers are increasingly taking on a heightened profile in Canada, entering the workforce each year in greater numbers than immigrant workers with labor mobility rights (Sharma 2006). This paper examines the incorporation of foreign workers in Canadian horticulture under the Seasonal Agricultural Workers Program (SAWP). I argue that foreign labor supplied under the SAWP secures a flexible workforce for employers and thus improves Canada's trade competitiveness in the global agrifood market. Using multiple research strategies, I track the evolution of Canadian horticulture in the global market and the transformation of labor in this industry. I outline the steady growth in the employment of temporary visa workers in the horticultural industry and show how they have become the preferred and, in some cases, core workforce for horticulture operations. The benefits of SAWP workers to employers include the provision of a workforce with limited rights relative to domestic workers and considerable administrative support in selecting, dispatching, and disciplining workers provided at no cost by labor supply countries. I conclude that the SAWP is a noteworthy example of the role of immigration policy in regulating the labor markets of high‐income economies and thus ensuring the position of labor‐receiving states within the global political economy.     

Pick-Your-Own Labor: Migrant Workers and Flexibility in Canadian Agriculture1

This paper explores the structures and practices of temporary migrant worker programs (TMWP) as they operate in Canadian agriculture. Acting within highly competitive, globalized markets, agri-food employers rely on the availability of migrant workers to achieve greater flexibility in their labor arrangements, drawing on employment practices beyond those possible with a domestic workforce. Most recently, changes to Canada’s two TMWP schemes have provided employers with greater scope to shape the social composition of their workforce. The paper analyzes these changes while exploring their implications for workplace regimes in agriculture.     

Demografischer Wandel,Alterung und Arbeitsmarkt in Deutschland

Debates about the consequences of demographic change for the labor market relate to two distinct levels; both will be addressed in this chapter. First, demographic ageing changes the composition of the workforce. Theories about how labor markets work lead to the conclusion that demographic changes do not affect immediately supply and demand of labor and the structure of the workforce. Rather, consequences of demographic changes are moderated by labor market institutions.Second, demographic ageing has consequences for the organization of work. Permanent topics of sociological research are consequences of ageing workforces in the firm for productivity and innovation, consequences of ageing workforces for human resource policies of firms, extent of and coping with the problem of limited durations to perform strenuous work tasks, and consequences of ageing workforces for industrial relations. One central finding is that firms meet various challenges in their external and internal environments, among them being ageing workforces only one. Moreover, as strategic actors, different firms can choose different strategies even in similar environments. Consequences of demographic changes for work organization on enterprise level are, therefore, far from deterministic.     

Strengthening the Domestic and Family Violence Workforce: Key Questions

ABSTRACT

The significant impact of domestic and family violence in Australia calls for a workforce that is both highly skilled and capable of meeting the demands of complex and challenging jobs. Yet despite the increasingly national visibility of domestic violence, the workers—and work itself—have largely remained invisible. We argue for a shift in conversation, highlighting the need for a workforce approach that is not only strategic but that also applies a theorised lens to domestic and family violence work inclusive of both gender and Indigeneity.

IMPLICATIONS

• The domestic and family violence workforce and workers should be made more visible to better support development in this sector.

• A workforce development strategy is needed to build knowledge about who is doing this work, the nature of the work, workplace structures and cultures, and work environments and conditions.

• The significance of gendered power relations, Indigeneity, high risk, trauma environments, and emotional labour in domestic and family violence work cannot be ignored in development strategies.

     

MOBILITY FROM PRERETIREMENT TO POSTRETIREMENT JOB

While the normative pattern of retirement is complete cessation of labor force activity, approximately one-third of men work during their retirement. This research focuses on such "working-retirees" by investigating the prevalence and patterns of occupational mobility from pre- to postretirement job, as well as the impact that institutional constraints on (re)employment in later life may have on the chances of occupational mobility. Using data from the older men's cohort of the National Longitudinal Surveys, a sample of working-retirees was extracted from men who retired between 1967 and 1978. Results showed a substantial amount of occupational mobility among the working-retired. The structure of mobility was found to be similar to younger labor force participants in that most mobility consists of moves to adjacent occupational categories. Unlike career mobility of nonretired workers, however, the large majority of moves constituted downward mobility. Using the economic segmentation perspective, log-linear and logistic regression analyses indicated that working-retirees whose preretirement jobs were in the core sector were more likely to experience occupational mobility. As a more specific indicator of bureaucratic control of the labor force, industry-level pension coverage rates were used in the logistic regressions and higher rates of pension coverage were found to result in a greater likelihood of mobility. These results indicate that the considerable occupational mobility experienced by working-retirees is partially the result of structural constraints on the employment of older men.     

Barriers to evidence based practice in accommodations for an aging workforce

According to a recent Government Accountability Office report, the number of workers over age 55 is projected to increase significantly over the next twenty years, with this demographic group projected to comprise as much as twenty percent of the workforce by 2015 [12]. Accommodating the functional limitations of a large number of older workers may prove challenging for employers; however, policies and practices shaped over the course of the next few decades could allow aging workers to remain a valuable part of the US economy. Given these considerations, it is useful from a public policy perspective to determine the degree to which employers are currently addressing the accommodation needs of older workers. This paper presents the results of a study that attempted to determine the extent to which a sample of Fortune 500 employers was currently accommodating older workers. The study's methodology (in particular, its use of semi-structured telephone interviews) is reevaluated and new options (such as anonymous online employer surveys) are considered for the valid and reliable collection of data on accommodations for older workers.     

Effect of Health on Retirement of Older Americans: a Competing Risks Study

Retirement is an important event in the life of an individual. The decision to retire or exit from full-time employment may be motivated by several factors, including health. This paper explores the effect of both subjective and relatively more objective physical and mental health conditions on the probability of exit from full-time employment. Using longitudinal data on older Americans from ten waves of the Health and Retirement Study (1992–2010), eight health indices are created from a wide range of health measures by principal component analysis. The effect of these health indices on the time until exit from full-time employment is empirically examined in a proportional hazard model. Single and competing risk specifications are estimated that allow for multiple spells of full-time employment and control for unobserved heterogeneity. The main results suggest that better self-reported health decreases the likelihood of exit from full- time employment, while poor physical health (functional limitations factor) increases the likelihood of exit from full-time employment via complete retirement and disability. For mental health, I find that depression increases the likelihood of exit via complete retirement, part-time work and unemployment while cognitive disorders lead to an increase in likelihood of exit via the disability exit route. Hence, physical and mental health problems are both impediments to continued work. These results have implications for public policies targeted towards retaining older workers within the labor market.