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Labour Supply and Employment of Older Workers

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Ageing, Health and Pensions in Europe

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Abstract

A key concern of European policymakers is how to raise the labour-force participation of older workers. This is necessary, for example, to guarantee the sustainability of pension systems in many countries – one of the challenges posed by population ageing. Retirement and labour-supply decisions of older workers are core topics in microeconomic research. While there is consensus that economic factors (such as the generosity of early retirement benefits and pensions) play an important role, a crucial role is also played by psychological and social factors (such as quality of work and work satisfaction, social networks and retirement decisions of family members and peer groups). Health also plays a major role, through work disability, chronic diseases (morbidity) or the expected remaining lifetime (longevity). Public policy affects the economic environment under which labour-supply decisions are made, through eligibility rules and levels of state pensions, and through taxation of occupational pensions and other savings.

This chapter benefited from the comments of Lans Bovenberg, Tim Callan, Maarten Lindeboom, Ruud de Mooij, Asghar Zaidi, and other participants in the ESF workshops in Dublin and The Hague.

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Authors
  1. Arthur van Soest
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Editors and Affiliations

  1. University of Tilburg, The Netherlands

    Lans Bovenberg  & Arthur van Soest  & 

  2. European Centre for Social Welfare Policy and Research, Vienna, Austria

    Asghar Zaidi

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© 2010 Arthur van Soest

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van Soest, A. (2010). Labour Supply and Employment of Older Workers. In: Bovenberg, L., van Soest, A., Zaidi, A. (eds) Ageing, Health and Pensions in Europe. Palgrave Macmillan, London. https://doi.org/10.1057/9780230307346_11

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