By Organisation for Economic Co-Operation and Development
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Extra resources for Ageing and Employment Policies, Spain (Ageing and Employment Policies)
When formulating policies directed towards the mobilisation of older workers, the issue of gender merits special consideration. 56 Chapter 3 PROTECTING PEOPLE WHILE ENHANCING WORK INCENTIVES: THE ROLE OF THE WELFARE SYSTEM Supply-side factors are important explanations of the low employment rates of older people. Individual decisions to work depend on benefit levels and eligibility criteria in public pension schemes. But they are also shaped by social security systems, unemployment benefits, and tax rules for individual pension schemes.
1 Table B. Transition employment probabilities for workers aged 30-49 Situation in year t+1 Situation in year t Employed Unemployed Inactive Total Empl. 8 Unempl. 3 Men Inact. 9 Empl. 9 Unempl. 5 Women Inact. 6 Empl. 3 Unempl. 9 Inact. 9 D. The incidence of temporary employment is high, while part-time is not common practice There is a delicate balance between increased labour market flexibility on the one hand and reducing job precariousness on the other. Labour market flexibility through wider recourse to temporary and part-time employment lead to an increase in the discretionary powers of employers in terms of working hours and dismissal.
If positive, it implies that workers face an incentive to continue working whereas if negative there is a disincentive. In all cases, it is assumed that workers in each country have contributed continuously to the pension system since the age of 20. Based on these two indicators, the following observations can be made: • In comparison with other OECD countries, the net replacement rate in Spain is high. Of course, these replacement rates refer to public pensions only, including in some cases, publicly-mandated occupational pensions.
Ageing and Employment Policies, Spain (Ageing and Employment Policies) by Organisation for Economic Co-Operation and Development