Ageing and Employment Policies: Denmark 2015
Working Better with Age
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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Executive summary
Both employment and unemployment for older people have risen over the past decade in Denmark. Incentives and provisions to retire early were previously too generous, explaining Denmark’s high level of reform efforts in recent years. The 2006 Welfare Agreement and the 2011 Agreement on Later Retirement are important steps taken to reduce the burden of an ageing population. Further efforts are needed to implement a broader strategy to promote longer working lives.
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