Ageing and Employment Policies

English
ISSN: 
1990-1011 (online)
ISSN: 
1990-102X (print)
DOI: 
10.1787/19901011
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People today are living longer than ever before, while birth rates are dropping in the majority of OECD countries. Such demographics raise the question: are current public social expenditures adequate and sustainable? Older workers play a crucial role in the labour market. Now that legal retirement ages are rising, fewer older workers are retiring early, but at the same time those older workers who have lost their job after the age of 50 have tended to remain in long term unemployment.  What can countries do to help? How can they give older people better work incentives and opportunities? These reports offer analysis and assessment on what the best policies are for fostering employability, job mobility and labour demand at an older age.


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Ageing and Employment Policies: Netherlands 2014

Ageing and Employment Policies: Netherlands 2014

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English
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Author(s):
OECD
16 Apr 2014
Pages
140
ISBN
9789264208155 (PDF) ;9789264208148(print)
DOI: 
10.1787/9789264208155-en

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Given the ageing challenges, there is an increasing pressure in OECD countries to further boost the employability of the working-age population over the coming decades. This report provides an overview of policy iniatives implemented over the past decade in the Netherlands and identifies areas where more should be done, covering both supply-side and demand-side aspects. To give better incentives to carry on working, the report recommends to promote longer contribution periods in the second-pillar pension schemes, and ensure better information and transparency of pension schemes, with a special focus on groups with low financial literacy. On the side of employers, it is important to progress towards more age-neutral hiring decisions and wage-setting procedures with more focus on performance and less on tenure and seniority. To improve the employability of older workers, the focus should be to promote training measures for older unemployed which are directly linked to a specific job. The large diversity in municipal "Work-First"programmes should be utilised in designing mor effective activation policies targetted on those at risk of losing contact with the labour market.

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  • Foreword

    Given the phenomenon of rapid population ageing in member countries, providing older people with better work incentives and choices is crucially important, both in order to promote economic growth and to help sustain public social expenditures. Therefore, in 2011 the OECD Employment, Labour and Social Affairs Committee decided to carry out a new series of policy reviews to encourage greater labour market participation at an older age, through the fostering of employability, job mobility and labour demand. It builds on previous work that the OECD has conducted in this area in the Ageing and Employment Policies series, summarised in the Organisation’s major multi-country report, Live Longer, Work Longer, published in 2006.

  • Executive summary

    Leaving the labour market through early retirement and disability schemes was previously commonplace for older workers in the Netherlands. Over the past decade, the authorities have taken steps to: increase the incentives to work; close pathways to early retirement; tackle overutilisation of disability pension; and raise the state pension age. Encouraging results have been achieved, but the Netherlands still remains well behind the best achievers. The recommendations that are put forward below, as possible elements of an overall strategy for promoting the employment and employability of older workers, are based on three mutually supportive actions: i) better incentives to carry on working; ii) tackling employment barriers on the side of employers; and iii) improving the employability of older workers.

  • Assessment and key recommendations

    Like many other countries, the Netherlands is facing the challenge of a rapidly ageing population. The number of those aged 65 and over, measured as a proportion of the population aged 20-64, is projected to double: from 27% in 2012 to 52% in 2050. This places the Netherlands mid-range among OECD countries in terms of the old age dependency ratio – in 2010 as well as in the 2050 projection.

  • The "Live Longer, Work Longer" challenge for the Netherlands

    The Dutch population is ageing rapidly, and the population structure by age is due to become considerably flatter over the next decades. This chapter conveys the magnitude of the demographic challenges and provides an overview of recent reforms in ageing and employment policies. These reforms were implemented partly in response to recommendations contained in the 2005 OECD report Ageing and Employment Policies: Netherlands.

  • The labour market situation of older workers in the Netherlands

    There has been a significant increase in the employment of older people in the Netherlands over the past decade. Nevertheless, their employment rate remains well below that of the best achievers among OECD countries, and mobility among older workers is very low. This chapter examines developments in the labour market situation for older people following recent reforms in ageing and employment policies.

  • Making work rewarding for Dutch seniors

    Until less than a decade ago, it was common practice for older workers in the Netherlands to leave the labour market through early retirement and disability schemes. Steps have been taken to increase incentives to work; close pathways to early retirement; tackle over-utilisation of the disability pension; and raise the state pension age. The purpose of this chapter is to assess the impacts of these reforms and to identify the remaining challenges and further reforms that may need to be taken.

  • Encouraging employers in the Netherlands to hire and retain older workers

    In the Netherlands, employers have a responsibility for investing in older workers and taking other measures to improve employability and prevent early exit from the labour market. Active ageing policies are in large part established through collective labour agreements, but the challenge is to reach those not covered by agreements, as well as companies whose awareness of age management issues is low. This chapter provides an overview of measures already taken or that could be taken to better manage age diversity in the workplace. These deal with seniority wages, costs and productivity, and protecting employment opportunities rather than jobs.

  • Strengthening the employability of older workers in the Netherlands

    In addition to adequate economic incentives and better employer practices, employability and willingness to stay on working are prerequisites to increasing the employment rates for older workers. This chapter provides an overview of measures that have been taken to boost the employability of older workers. Suggestions are made for ameliorating some of these measures: reducing inequalities in training participation by age and skill; helping private and public employment agencies provide better employment assistance; and improving working conditions.

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