Most Western countries are suffering from labour shortages due to their aging populations. As a result, public policies are being implemented to encourage people approaching the end of their traditional work roles to delay their retirement and remain active in the labour market. However, despite government measures, major obstacles to continuing their work activity persist, including the desire to retire, age discrimination, and health problems associated with ageing.
Boissonneault and Vilotitch investigated the links between health and labour market participation among people aged between 52 and 70. Their study focused on eight Western countries with aging populations: Belgium, Denmark, England, Italy, the Netherlands, Spain, Sweden, and the United States. Using the data of national public surveys from the periods 2004–2007 and 2012–2013, the authors analyzed three objective measures of physical health (handgrip strength, air expulsion test, and chair test) and one measure of mental health (indicator of depression).
The results indicated that there was an increase in the participation rate of people in this age category in all countries between the two periods studied. The authors explain this phenomenon by the fact that, in the past few decades, these countries have introduced policies to encourage employment after the expected retirement age. However, this increase in the employment rate is not the same for all experienced people: it varies according to health condition. For people in poorer health condition, changing the suggested retirement age will not affect their employment rate, as health, not age, determines the end of their working career. For people in better health, on the other hand, extending the minimum retirement age can contribute to maintaining them in employment. It should be noted that not every experienced person with poorer health is absent from the labour market: Only experienced people with significantly poorer-than-average health are inactive because of their health.
The authors also found that health has the same influence on labour market participation in all the countries studied, but that there are marked differences in the influence of age. Indeed, some countries have less generous retirement benefit policies or stricter eligibility criteria, which may push people in these countries to postpone their retirement age. Boissonneault and Vilotitch’s study serves as a reminder that experienced people can make a significant contribution to the economic life of their communities, even beyond the “retirement” age set by institutions. CDPs have an important role to play in valuing the experience and expertise of people nearing the end of their careers, so that they can continue to fulfill themselves through work — health permitting, of course.
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