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Financial Analytics: Science and Experience
 

International experience in institutionalizing the employment of the third age population

Vol. 9, Iss. 23, JUNE 2016

PDF  Article PDF Version

Received: 17 December 2015

Received in revised form: 11 January 2016

Accepted: 17 May 2016

Available online: 29 June 2016

Subject Heading: ECONOMIC AND STATISTICAL RESEARCH

JEL Classification: J14, J18, J22, J26

Pages: 51-59

Mikhel' E.A. Institute of Economics of Karelian Research Center of Russian Academy of Sciences, Petrozavodsk, Republic of Karelia, Russian Federation
e-mikhel@mail.ru

Importance Considering Russia's population aging, depopulation and the youth relocating from remote and northern areas, labor capabilities of the elder generations should be effectively used. These issues are typical of foreign countries too, thus allowing to examine international experience and find the best practices.
Objectives The research examines and evaluates whether the institutionalization process has been effective abroad in terms of employing the elder generations. The best practices are proposed to be used in Russia.
Methods The research involved methods of economic and institutional analysis of foreign and national laws on employment regulation. Using statistical and empirical data obtained though sociological survey in the Republic of Karelia, I evaluated the efficacy of the Russian policies for employment referring to the evidence of the northern border region. International data were compared and sourced from the OECD.
Results I compared and analyzed foreign laws governing the employment of the elder generations, reduction of employers' costs, development of labor capabilities. I assessed how efficiently institutional innovation was implemented, referring to trends in ages of the employed population.
Conclusions and Relevance I determined structural components to reform the policy for increasing economic activity of the elder population, and employment trends. The Russian practices demonstrate less diversity than foreign ones. They mainly pursue reforming the pension system, increasing tax burden and concurrently keeping the retirement age, and ensuring social liabilities of the State.

Keywords: employment, third age generation, economic activity

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