Elderly Population in a Labour Market: Resource for the Economy or a New

Challenge for Social Policy

Yulia LezhninaHigher School of Economics, Moscow, Russia

10-th ESA ConferenceGeneva, 7-10 September 2011

Empiric Data

• Russian Longitudinal Monitoring Survey - RLMS, panel research, 2007 (N= 10350, N(pensioners)=3033), 2005 (N=12237, N (pensioners)=3003); 

• Needy people in Russia, 2008, hold by Institute of Sociology, Russian Academy of Science (N=1749, N (pensioners) = 520).

• Social Policy and Social Reforms by Eyes of Russians, 2006, hold by Institute of Sociology, Russian Academy of Science (N=1750)

Rate of pensioners, Rosstat, 1970-2009, %

Rate of employed among different groups of pensioners, RLMS, %

Occupational group

First 5 years after

reaching the retirement

age

Second 5 years after

reaching the retirement

age

Third 5 years after

reaching the retirement

age

More then 15 years after

reaching the retirement

age

Professionals 63 43 23 6

Semi-professionals 65 33 10 3

Clerks 35 24 8 2

Workers 37 11 4 1

Workers of simple occupations 38 28 13 2

Financial motive for pensioners’ employment, RLMS

Individual income and income per capita for working and non working pensioners

Income groups: 1— up to 1500 rub, 2 – 1500-2000 rub, 3 –2001-3000 rub, 4 –3001-4000 rub, 5 –4001-6000 rub, 6 – 6001-9000 rub, 7 – more then 9000 rub

Social feeling of pensioners, RLMS, % (agreement with statements)

Occupational positions of pensioners and non pensioners RLMS, %

Health status of elderly population in the UK and Russia

Health status of British population aged

61 according to EQ-5D, 1998, %

Health status of Russian population aged 61 according to EQ-5D, 2005, %

Chronicle diseases of pensioners, RLMS, %

Occupational status of different groups of population, RLMS, %

Working experience of pensioners with different occupational status for current employer, RLMS, %

Occupational status

Working experience

Up to 6 years

6-10 years

11-25 years

More then 25 years

Managers 51 18 18 13

Professionals 20 15 24 41

Semi-professionals 38 12 21 29

Clerks 42 13 22 23

Workers 38 13 23 26

Workers of simple occupations 67 15 12 6

Reciprocal exchange with other households, IS RAS, %

Without pensioner

With pensioners

Only pensioners Only pensioners

Receiving Providing

Housekeeping 8 13 26 9

Help with products 14 11 27 13

Child care 14 8 2 17

Gardening 10 17 27 8

Material help 17 12 25 12

Help in event organizing 8 7 6 4

Sewing and other home help 10 11 9 5

Help in repairing 15 18 18 6

Caregiving for sick persons 3 7 10 6

Receiving for vocations (including children) 6 5 3 10

Transportation 14 17 17 7

Consulting 2 4 2 5

Psychological support 25 28 25 23

None 44 39 33 45

New Challenges for Social Policy

According to:• approach to Health system,• System of education,• developing of «family» infrastructure;and • migration policy,• anti-discrimination law,• employment policy and labour law

Yulia Lezhnina

jlezhnina@gmail.com

Health measurement according to EQ-5D

• 3 grades estimations (1-3) according to

1. Ability to move

2. Ability to take care of themselves

3. Every day activity

4. Pain and discomfort

5. Anxiety and depression• 5 figures code (11111, etc.)• Enlarged code (healthy-not healthy-sick)

Distribution of EuroQol Health States in a UK National Survey and RLMS

  UK, 1998 (N = 3395) Russia, 2005 (N = 12237)Health Up to 60 61+ Up to 60 61+11111 65 37 37 811121 8 12 13 1211112 8 3 11 111122 4 4 26 1621121 2 7 1 321222 2 5 1 611221 2 2 0 111222 2 1 2 221122 1 3 2 521111 0 2 0 022222 1 2 1 722221 0 2 0 221211 0 1 0 021232 0 1 1 4Others 6 18 5 67

Consequences of raising the retirement age

•The greatest impact on the urban labor markets with growth of the unemployed (including youth) in certain segments

•Conservation of ineffective workforce in case of specific human capital with a low level of general human capital possession

•The difficulty of access to positions of professionals for more effective and young workers, and maintenance on them low salaries with slowing down of the formation of the Russian middle class

•Preservation of structural imbalances in the labor market (labor shortage in positions of manual workers, etc.)

Total effect - reduction of economic efficiency and growth of social tension; reducing the costs of the Pension Fund together with a

increase in budget expenditures on a number of other areas (transfer for disability, neediness, etc.)

Additional Consequences of raising the retirement age according to different paths

One-stage increase (short-term effects):• "Ivalidization" of elderly people, especially unskilled workers and

increasing the load on health system

* Bearing high expenditures on adoption of anti-discrimination legislation and the development of expensive retraining programs

Gradual increase (medium-and long-term effects):• Reducing the level of human capital of the country's workforce,

including both the reduction of its general qualifications, and deterioration of health

• The increase of unemployment among pre-pension age population, especially in the stagnating local labor markets

Necessity of a set of preliminary measures of social policy before raising the retirement age

Схема формирования профессиональных групп

Профессиональные позицииОбразование

Неполное среднее

Сред-нее

Среднее специальное /неокончен. высшее

Выс-шее

Военные ОП ОП П П

Законодатели, крупные чиновники, топ-менеджеры

ОП ОП П П

Профессионалы ОП ОП П П

Техники, специалисты и помощники профессионалов

ОП ОП ПП ПП

Клерки, офисные работники ОП ОП ОП ОП

Работники сфер услуг ОП ОП ОП ОП

Квалифицированные работники сельского хозяйства

РПП РПП ОП ОП

Рабочие ручного труда Р Р Р Р

Операторы машин и оборудования и сборщики

Р Р Р Р

Низкоквалифицированные работники РПП РПП РПП РПП