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Ageing and Employment Policies: Denmark 2015

Working Better with Age

image of Ageing and Employment Policies: Denmark 2015

Given the ageing challenges, there is an increasing pressure in OECD countries to promote longer working lives. This report provides an overview of policy initiatives implemented in Denmark over the past decade. Even if these recent reforms are well in line with the recommendations of the 2005 OECD report Ageing and Employment Policies: Denmark, the focus has been put mainly on the supply side. The aim of this new report is to identify what more could be done to promote longer working lives. As a first step, the government should assess closely the implementation process to ensure that the expected outcomes of the reforms are achieved. More broadly, the strategy should act simultaneously in three areas by: i) strengthening incentives to carry on working; ii) tackling employment barriers on the side of employers; and iii) improving the employability of older workers.

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Encouraging employers in Denmark to hire and retain older workers

This chapter analyses the extent to which there are employment barriers in firms for older workers. Efforts to manage age diversity in the work setting are examined, such as tackling age discrimination; limiting mandatory retirement ages; and reaching collective labour agreements that establish frameworks aimed at the retention of older workers. Provisions such as “senior days” in regions and municipalities are enumerated, and the relationship between wages and older workers’ productivity – as perceived and as documented – is discussed. The importance of flexible wage setting is highlighted, as is the value of (as yet rare) senior entrepreneurship.

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