Ageing and Employment Policies: France 2014

Working Better with Age

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People today are living longer than ever before, while birth rates are dropping in the majority of OECD countries. In such demographics, public social expenditures require to be adequate and sustainable in the long term. Older workers play a crucial role in the labour market. Now that legal retirement ages are rising, older workers will work longer and employers will have to retain them. But those older workers who have lost their job have experienced long term-unemployment and low probabilities to return to work. What can countries do to help? How can they give older people better work incentives and opportunities? How can they promote age diversity in firms? This report offers analysis and assessment on what the best policies are for fostering employability, job mobility and labour demand at an older age in France.

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Strengthening incentives to continue working in France

An important area to be explored for explaining the lower employment rate among older workers is social protection. While there has been progress in recent years, generally speaking, the question of staying in employment or not still arises for too many older workers. Nearly half of older workers do not move directly from employment into retirement, but experience long spells of non-employment of various kinds. At the same time, there are more older workers who continue to pursue a paid activity, even occasionally, after they take their retirement, thus combining a pension and income from work. This chapter will focus on the main situations in which older out-of-work persons find themselves (retirement, disability, early retirement, unemployment, and social assistance)

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