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Age Differences in Unemployment Risk and Reemployment Outcomes in Late Working Life in Sweden
Linköping University, Department of Culture and Society, Division of Ageing and Social Change. Linköping University, Faculty of Arts and Sciences.ORCID iD: 0000-0001-5161-8335
Linköping University, Department of Culture and Society, Division of Ageing and Social Change. Linköping University, Faculty of Arts and Sciences.ORCID iD: 0000-0001-8697-1876
Linköping University, Department of Culture and Society, Division of Social Work. Linköping University, Faculty of Arts and Sciences. Aging Research Center, Karolinska Institutet & Stockholm University, Stockholm, Sweden.ORCID iD: 0000-0001-9369-1928
2024 (English)In: Journal of Aging & Social Policy, ISSN 0895-9420, E-ISSN 1545-0821, p. 1-26Article in journal (Refereed) Epub ahead of print
Abstract [en]

Participation of older workers in the labor market depends, among other things, on older workers employment chances. This study examines age differences regarding risk of unemployment and reemployment outcomes in late working life in Sweden. Using Swedish registry data, we analyzed the probability of unemployment as well as work-related activity following unemployment (wage- or self-employment; exit; downward mobility) of all people born between 1954 and 1968 (aged 49?63) and registered in Sweden between the years 2012 and 2018. Results show that although risk of unemployment does not differ significantly across age groups, younger age groups are more likely to be reemployed as wage-employed while older age groups are more likely to be reemployed as self-employed or exit working life. After an unemployment period, older employees are more likely to have a lower wage than during their previous employment or become part-time unemployed. We conclude that different age groups have unequal chances in late working life in terms of reemployment, risk of exit, and risk of downward mobility following unemployment. Policies for extending working life and promoting inequality should include measures for increasing employability of older workers such as anti-discriminatory laws and dealing with skills mismatch. Among older people, the risk of unemployment does not differ across age groups.Among older people, reemployment chances decrease by age.After unemployment, the probability of exit or self-employment increases by age among older people.Older employees have higher risk of downward mobility after unemployment.Policies for the demand side and employability of older workers are needed. Among older people, the risk of unemployment does not differ across age groups. Among older people, reemployment chances decrease by age. After unemployment, the probability of exit or self-employment increases by age among older people. Older employees have higher risk of downward mobility after unemployment. Policies for the demand side and employability of older workers are needed.

Place, publisher, year, edition, pages
Routledge , 2024. p. 1-26
Keywords [en]
Age discrimination, late working life, older workers, reemployment, unemployment
National Category
Sociology
Identifiers
URN: urn:nbn:se:liu:diva-202008DOI: 10.1080/08959420.2024.2319530ISI: 001190645600001PubMedID: 38526003OAI: oai:DiVA.org:liu-202008DiVA, id: diva2:1848515
Note

Funding: This work was supported by the European Union’s Horizon 2020 research and innovation program under the Marie Sklodowska-Curie grant agreement [764632], and the Swedish Research Council for Health, Working Life and Welfare (FORTE) under the grant number [2019-01245]

Available from: 2024-04-03 Created: 2024-04-03 Last updated: 2024-08-01Bibliographically approved
In thesis
1. Inequalities and Age-Related Disadvantages in Late Working Life and Labour Market Exit in Sweden
Open this publication in new window or tab >>Inequalities and Age-Related Disadvantages in Late Working Life and Labour Market Exit in Sweden
2023 (English)Doctoral thesis, comprehensive summary (Other academic)
Alternative title[sv]
Ojämlikheter och åldersrelaterade nackdelar under den senare delen av arbetslivet och i utträdet från arbetsmarknaden i Sverige
Abstract [en]

The participation of older individuals in the labour market has increased as a result of recent demographic and societal shifts, as well as reforms of pension and social security systems. However, employment inequalities in late working life and labour market exit persist. Early exit from the labour market affects the sustainability of public finances and the availability of skilled labour, as well as the financial, social, mental, and physical well-being of individuals. So far, the literature on employment in late working life and labour market exit has mainly focused on individual choices. However, employment and exit in late working life are complex phenomena that depend on a variety of factors, such as individual life courses and labour market conditions. Based on Swedish register data, this thesis examines inequalities in employment and labour market exit among people aged 55 and over in Sweden, and the role of life course and age-related labour market disadvantages, including studies on: inequalities and diversity between gender and educational groups (Study 1); the relationship between mid-life labour market attachment and patterns of labour market exit (Study 2); age-related disadvantages in unemployment risk and re-employment chances (Study 3); and the link between older workers’ hiring chances and the characteristics and labour market conditions of employers (Study 4). Study 1 shows that employment trajectories, including the receipt of pension, unemployment and disability benefits, are structured by gender and education. While women tend to exit the labour market earlier than men and are more likely to receive disability benefits, men are more likely to move into self-employment or to receive unemployment benefits. Study 2 demonstrates that individuals with low labour market attachment early (at age 30) or late (at age 50-59) in their working careers are more likely to exit the labour market early, while low labour market attachment in mid-career (at age 40-49) is linked with later labour market exit. However, low labour market attachment in all career stages is associated with the receipt of work-related benefits in the year of labour market exit. Study 3 reveals that older workers (in their late 50s and early 60s) are less likely (compared with workers in their early 50s) to be wage-employed after a spell of unemployment, and more likely to become self-employed, to remain unemployed, to exit the labour market, or, if re-employed, to experience downward mobility (lower wage or part-time unemployment). Finally, Study 4 shows that the age and educational composition of employees, combined with the sectoral affiliation of employers and local labour market conditions, are directly related to the likelihood of hiring older workers. That is, older workers are more likely to be hired in establishments with a high share of older and low educated employees, in the health, education, transport and storage sectors, and in municipalities with a high share of older people of working age, a high unemployment rate, and a low share of unfilled vacancies. This thesis makes a unique contribution to the literature on inequalities and age-related disadvantages in late working life, as well as on policies to extend working life and tackle inequalities in old age. The overall conclusion is that the diversity of employment trajectories is socially structured and related to individuals’ employability, workability, and flexibility to change employment or exit from the labour market – structured by individual life courses and labour market conditions. Policies towards equal and prolonged working lives should focus on sustainable working conditions, lifelong learning, and discriminatory practices, not only in late working life but throughout the overall working life course.  

Abstract [sv]

Äldre personers deltagande på arbetsmarknaden har ökat till följd av demografiska och samhälleliga förändringar samt reformer av pensions- och socialförsäkringssystemen. Men ojämlikheten i sysselsättningen under den senare delen av arbetslivet och i utträdet från arbetsmarknaden kvarstår. Tidigt utträde från arbetsmarknaden påverkar de offentliga finansernas hållbarhet och tillgången på kvalificerad arbetskraft, samt individers ekonomiska, sociala, psykiska och fysiska välbefinnande. Hittills har litteraturen om sysselsättning och utträde från arbetsmarknaden främst fokuserat på individuella val. Sysselsättning och utträde från arbetsmarknaden är dock komplexa fenomen som beror på en mängd olika faktorer, såsom individuella livslopp och arbetsmarknadsförhållanden. Genom analyser av svenska registerdata undersöker denna avhandling ojämlikheter i sysselsättning och arbetsmarknadsutträde bland personer som är 55 år och äldre i Sverige, i relation till livslopp och åldersrelaterade arbetsmarknadsnackdelar, genom studier om: ojämlikhet och skillnader mellan kön- och utbildningsgrupper ( Studie 1); sambandet mellan arbetsmarknadsanknytning i mitten av livet och olikheter i arbetsmarknadsutträde (studie 2); åldersrelaterade nackdelar i arbetslöshetsrisk och återanställningsmöjligheter (studie 3); och sambandet mellan anställningsmöjligheten för äldre personer och företags/arbetsplatsers egenskaper och arbetsmarknadsförhållanden (Studie 4). Studie 1 visar att olika sysselsättningsbanor genom arbetslivet, inklusive mottagande av pension, arbetslöshetsersättning och sjukersättning, varierar med kön och utbildning. Medan kvinnor tenderar att lämna arbetsmarknaden tidigare än män och är mer benägna att få sjukersättning, är det mer sannolikt att män blir egenföretagare eller får arbetslöshetsersättning. Studie 2 visar att individer med svag arbetsmarknadsanknytning tidigt (vid 30 års ålder) eller sent (vid 50–59 års ålder) i arbetslivet är mer benägna att lämna arbetsmarknaden tidigt, medan svag arbetsmarknadsanknytning i mitten av arbetslivet (vid 40–49 års ålder) är kopplat till senare utträde från arbetsmarknaden. Svag arbetsmarknadsanknytning i alla olika karriärskeden är dock förknippad med arbetsrelaterade ersättningar under året för arbetsmarknadsutträdet. Studie 3 visar att äldre arbetstagare (i slutet av 50-årsåldern och början av 60-årsåldern) har lägre sannolikhet (jämfört med arbetstagare i början av 50-årsåldern) att vara löneanställda efter en period av arbetslöshet, och högre sannolikhet att bli egenföretagare, att förbli arbetslös, att lämna arbetsmarknaden, eller, om återanställd, uppleva nedåtgående rörlighet (lägre lön eller deltidsarbetslöshet). Avslutningsvis visar Studie 4 att ålder- och utbildningssammansättning bland de anställda, i kombination med arbetsgivarens branschtillhörighet och lokala arbetsmarknadsförhållanden, är direkt relaterade till sannolikheten att äldre arbetstagare anställs. Det vill säga, äldre arbetstagare anställs i högre utsträckning på företag/arbetsplatser med en hög andel äldre eller lågutbildade anställda, inom hälso-, utbildnings-, transport- och lagersektorerna samt i kommuner med en hög andel äldre i arbetsför ålder, en hög arbetslöshet och en låg andel lediga platser. Avhandlingen ger ett unikt bidrag till litteraturen om ojämlikheter och åldersrelaterade nackdelar under den senare delen av arbetslivet samt för utvecklandet av politiska strategier för att förlänga arbetslivet och motverka ojämlikheter i den senare delen av livet. Den övergripande slutsatsen är att olikheter i sysselsättningsbanor genom arbetslivet är socialt strukturerade och relaterade till individers anställbarhet, arbetsförmåga och flexibilitet i att byta anställning eller lämna arbetsmarknaden – egenskaper som är relaterade till individuella livslopp och förhållanden på arbetsmarknaden. Politiska strategier för ett jämlikt förlängt arbetsliv bör fokusera på hållbara arbetsförhållanden, livslångt lärande och diskrimineringspraktiker, inte bara i slutet av arbetslivet utan under hela arbetslivet.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2023. p. 92
Series
Linköping Studies in Arts and Sciences, ISSN 0282-9800 ; 868
Keywords
Social inequality, Late working life, Older workers, Labour market exit, Labour market attachment, Life course, Age-related disadvantages, Hiring of older workers, Sweden, Social ojämlikhet, Sent arbetsliv, Äldre arbetstagare, Utträde från arbetsmarknaden, Arbetsmarknadsanknytning, Livslopp, Åldersrelaterade nackdelar, Anställning av äldre arbetstagare, Sverige
National Category
Work Sciences
Identifiers
urn:nbn:se:liu:diva-199067 (URN)10.3384/9789180754354 (DOI)9789180754347 (ISBN)9789180754354 (ISBN)
Public defence
2023-12-13, K1, Kåkenhus, Campus Norrköping, Norrköping, 13:00 (English)
Opponent
Supervisors
Note

Funding: The EuroAgeism project, funded by the European Union’s Horizon 2020 research and innovation programme under the Marie Skłodowska-Curie (grant no. 764632), and the EIWO research programme, funded by the Swedish Research Council for Health, Working Life and Welfare (grant no. 2019-01245).

Available from: 2023-11-09 Created: 2023-11-09 Last updated: 2024-04-03Bibliographically approved

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Öylü, GülinMotel-Klingebiel, AndreasKelfve, Susanne

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