Unemployment of older workers as a new problem area in the labour market: An empirical study on selected countries

The older workforce is increasing in the labour market and the median age of the economically active population is rising. This makes the older workforce a group that requires special attention in the labour market and social policies regarding unemployment and employment status. This study provides important evidence on the labour market situation of this group called "Older Workforce". The aim of the study is to determine the push and pull factors of the elderly workforce from the labor market and to reveal the causal relationship between elderly unemployment and some selected factors. Panel data analysis method was used in the study. GAUSS 6.0 and STATA 14.0 programs were preferred for analysis.. The data set consists of 27 OECD countries for the period 2000-2020. The dependent variable of the study is the unemployment rate in the 55-64 age group. The independent variables are higher education graduation rate in the 55-64 age group, internet usage rate, national income per capita and public health expenditure ratio allocated from national income. In the study, the second generation panel unit root test was applied due to the presence of horizontal cross-section dependence and homogeneous distribution of slope parameters. Then, Durbin-Hausman and Westerlun panel cointegration tests were applied according to whether the stationarity levels of the variables are different or the same with the dependent variable. Finally, Dumitrescu and Hurlin panel causality test and Emirmahmutoğlu and Köse panel causality test were applied according to whether the stationarity levels of the variables are the same or different with the dependent variable. According to the results of the analyses, none of the independent variables included in the model is the cause of elderly unemployment. There is a long-run relationship between older unemployment and national income per capita. The most crucial factor that negatively affects older unemployment is ageism and stereotypes. It is concluded that the idea that the older workforce is inefficient, incompatible with technology, frequently ill and reluctant to improve themselves is a prejudice. In addition, it is understood that there is no causal relationship between the level of education and older unemployment. Considering the findings of the study, some policy recommendations can be made. Training and awareness-raising activities should be carried out for employers and employer representatives to eliminate their negative prejudices about the older workforce. Legal arrangements should be made to protect those who are subjected to age discrimination in working life. Lifelong education and active ageing policies should be planned for all age groups participating in the labour force and should be turned into social policies. A business model that connects pre-retirement and post-retirement through the gradual retirement system should be established. Because working life and the sense of being useful also contribute to socialisation and the maintenance of psychological well-being. Therefore, it is necessary to create flexible forms of employment that can bridge the gap between pre- and post-retirement and to create voluntary work opportunities.