Ageing and Employment Policies/Vieillissement et politiques de l'emploi Live Longer, Work Longer: Work Disincentives and Barriers to Employment

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Key messages: Older people face a range of work disincentives and barriers to employment. First, there are penalties or low rewards for carrying on working in old‐age pensions and other parts of the tax and welfare system. Second, employers are often reluctant to hire older workers or retain them in their jobs for a variety of reasons. Finally, older workers themselves can find it difficult to stay in their jobs or to find new ones. The challenging task of lowering these barriers and disincentives to work is magnified by the legacy of public and private early‐retirement schemes that have created an expectation of early retirement. Given the many factors at work, pension reform alone will not be sufficient enough to promote employment opportunities for older workers.

Document Type: Review Article

Publication date: April 1, 2006

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