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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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The labour market situation of older workers in Denmark

This chapter sets the scene for the book’s later discussions by examining the prospects for older workers in the context of the flexicurity model that characterises the functioning of the labour market in Denmark. It begins with a summary of indicators and a scoreboard that compares the country’s labour market situation with those of other EU and OECD countries. The effectiveness of active labour market programmes is assessed in relation to adjustments made necessary by stress factors, most notably the 2007 financial crisis. Employment rates for older people are presented – with findings from both register-based and labour force survey data – as well as unemployment rates, with special mention of the category “neither employed nor completely retired”. Various aspects of older workers’ low labour market mobility are then discussed.

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