Elderly Population in a Labour Market: Resource for the Economy or a New Challenge for Social Policy Yulia Lezhnina Higher School of Economics, Moscow, Russia 10-th ESA Conference Geneva, 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, , %

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 Semi-professionals Clerks Workers Workers of simple occupations

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 – rub, 3 – rub, 4 – rub, 5 – rub, 6 – 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 years More then 25 years Managers Professionals Semi-professionals Clerks Workers Workers of simple occupations

Reciprocal exchange with other households, IS RAS, % Without pensioner With pensioners Only pensioners Receiving Providing Housekeeping Help with products Child care Gardening Material help Help in event organizing 8764 Sewing and other home help Help in repairing Caregiving for sick persons Receiving for vocations (including children) Transportation Consulting 2425 Psychological support None

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

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) HealthUp to 6061+Up to Others618567

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 позиции Образование Неполное среднее Сред- нее Среднее специальное /неокончен. высшее Выс- шее ВоенныеОП ПП Законодатели, крупные чиновники, топ- менеджеры ОП ПП ПрофессионалыОП ПП Техники, специалисты и помощники профессионалов ОП ПП Клерки, офисные работникиОП Работники сфер услугОП Квалифицированные работники сельского хозяйства РПП ОП Рабочие ручного трудаРРРР Операторы машин и оборудования и сборщикиРРРР Низкоквалифицированные работникиРПП