The OECD is examining how the two global mega-trends of population ageing and rising inequalities have been developing and interacting, both within and across generations. This work, and specifically a new report “Preventing Ageing Unequally” (to be released on 18 October), will take a life-course perspective, showing how inequalities in education, health, employment and income interact, and can result in large lifetime disparities across different groups. This discussion will focus on a policy agenda for more inclusive ageing to prevent, mitigate and cope with inequalities and ensure a better retirement for all, with policies coordinated across family, education, employment, social ministries and agencies.

1. INCLUSIVE AGEING – ACTION PLAN
Stefano Scarpetta
Director of Employment, Labour and Social Affairs
OECD
OECD Global
Parliamentary Network
Paris
11 October 2017

2. THE CHALLENGES

3. Population ageing is accelerating
3
Number of people aged 65+ per 100 people of working-age (20-64)
Source: OECD (2017) - Preventing Ageing Unequally based on United Nations World Population Prospects: The 2017 Revision data.
0
10
20
30
40
50
60
70
80
90
India Poland United States OECD EU United
Kingdom
France Portugal Germany Japan
2015 1980 2050
Selected countries

4. Inequality has increased across cohorts,
especially at younger ages
4
Income Gini index by cohort and age group
Source: OECD (2017) - Preventing Ageing Unequally based on Luxembourg Income Study data.
OECD average by birth decade
0.22
0.24
0.26
0.28
0.30
0.32
0.22
0.24
0.26
0.28
0.3
0.32
20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79
Gini
Age
1920 1930 1950 1960 1970 19801940

5. The age gradient in employment rates
differs substantially across countries
5
Employment rates of workers aged 55-59, 60-64 and 65-69
Source: OECD (2017) – OECD Employment Outlook 2017.
0
10
20
30
40
50
60
70
80
90
100
Japan Germany United
Kingdom
France United States Portugal Italy Poland Greece
%
55-59 60-64 65-69 OECD 55-59 OECD 60-64 OECD 65-69
Selected countries in 2016

6. The lower the education level, the lower
the employment rate of older workers
6
Employment rates of population aged 55-64 by education level
Source: OECD (2017) - Preventing Ageing Unequally based on OECD Education Database data.
Selected countries in 2015 or latest available year
0
10
20
30
40
50
60
70
80
90
100
0
10
20
30
40
50
60
70
80
90
100
Germany Italy United States United Kingdom Portugal Poland France Greece
%
%
High Medium Low OECD high OECD medium OECD low

7. Participation rate in formal and non-formal training in the last four weeks, 2016
(% of employed people)
7
Older workers receive less training than adult workers
but training opportunities vary considerably across
countries
Source: Eurostat Database.
0
5
10
15
20
25
30
35
0
5
10
15
20
25
30
35
SWE FIN DNK NLD FRA GBR AUT EU28 SVN ITA CZE PRT HUN ESP BEL DEU IRL GRC POL SVK
55 to 74 years 25 to 54 years
% %

8. 8
Older people generally have poorer digital skills than
younger people, but there are large variations across
countries
Note: Belgium refers to Flanders only.
Source: Survey of Adult Skills (PIAAC), 2012 and 2014.
30
40
50
60
70
80
90
100
30
40
50
60
70
80
90
100
0
10
20
30
40
50
60
70
0
10
20
30
40
50
60
70
16-24 55-65 OECD average 16-24 OECD average 55-65
Prior computer experience and passed the ICT core test
(% of persons)
Good ability to use computers and solve problems
(% of persons)

9. POLICIES NEEDED TO
PREVENT AGEING UNEQUALLY

10. PAU contributes to Inclusive Growth
Growing disparities might paint a bleaker picture for the ageing prospects of
some population groups born after 1960
Life course events shape old-age inequality. Education, health and
employment experiences interact and compound (dis)advantages
Preventing Ageing Unequally Action Plan adopts a life course approach. It
was published at the June 2017 Meeting of the OECD Council at Ministerial
Level
The report containing analyses and policy implications will be launched on
18 October 2017
International conference planned on « Policies for Equal Ageing » in
Slovenia on January 2018
10

11. Preventing, Mitigating, Coping
Policy agenda to prevent, mitigate and cope with inequalities that build up
over the life course and result on old-age inequality, drawing on good
practices in OECD countries and emerging economies
1. Preventing inequality before it cumulates over time:
Much more efficient to pick up difficulties early
2. Mitigating inequalities accumulated at age 50.
Although inequality is deeply entrenched at age 50, effective support can
be provided to improve the situation of the 50+
3. Coping with inequality among retirees through old-age pensions and
long-term care
11

12. OECD Recommendation on Ageing and Employment Policies
consistent with the 2012 Vienna Ministerial Declaration
GOVERNMENT
EMPLOYERS
UNIONS
CIVIL SOCIETY
PILLAR 1
Rewarding work and
later retirement
PILLAR 2
Encouraging employers to
retain and hire older workers
PILLAR 3
Promoting employability
throughout working lives
12theOECDRecommendationoftheCouncilonAgeingandEmploymentPolicies

13. Summary
Inequality reducing policies in one area will spill-over into other
areas
The total falls in inequality from a given policy is greater than
when the impacts are only considered separately
 To ensure a more inclusive retirement for all, policies have to be
coordinated across family, education, employment, social ministries
and agencies
13

14. Forthcoming:
Preventing Ageing Unequally
Mid-October 2017!
stefano.scarpetta@oecd.org
www.oecd.org/els
Twitter: @OECD_Social
14
Working Better with Age
Related OECD work

15. POLICIES NEEDED TO
ENCOURAGE LONGER WORKING
LIFE AND ABILITY TO WORK

16. 1. Encouraging employers to
retain and hire older workers
16
• Screening of vacancy ads: Netherlands
• Age-blind aptitude tests: France
• Guidelines and audit tools: Ireland
Tackling age
discrimination
• New Pay System in public sector:Finland
• Action Plan for public sector wages:Croatia
• Seniority wage rises removed in CB
agreements:Germany
Aligning
wages with
productivity
• PES counselling for employers: Austria
• Promoting mid-career plans: UK
• Training for HRM staff and managers:
Finland
Age
management
advice

17. 2. Facilitating labour mobility
17
• Intensive counselling and Employment
Pacts in the regions: Germany
• System of integrated services for long-
term unemployed. Lithuania
• PES testing of remaining work ability:
Estonia
Helping
older
jobseekers
• Some EU countries helping the older
unemployed become self-employed
• The Dutch experience suggests that
these programs can be effective
• But risk of low job quality for those
becoming self-employed out of
necessity
Facilitating
self-
employment

18. 3. Taking a life course perspective:
Promoting training and skills recognition
18
• New adult VET program for low
qualified adults aged 30-50: Finland
• Training subsidies for SMEs for low-
skilled & workers aged 45+: Germany
Training
throughout
careers
• Digital skills of older workers are often
poor or risk becoming outdated
• Campaign to promote digital skills of
older people: Greece
Improving
digital skills
• Validation of Acquired Experience (VAE)
is especially valuable for older workers
• New VAE initiatives in Netherlands and
Portugal
Skills
recognition

19. 4. Taking a life course perspective:
Promoting better job quality
19
• Financial support for enterprises to improve
job quality for workers aged 45+: Belgium
• IFit2Work counselling service: Austria
• “Prevention Self-help Kits” with financial
assistance for enterprises and a “Senior
Starter Kit”: Denmark
Improving
working
conditions (1)
• Initiative New Quality of work (INQA):
Germany
• Range of measures to prevent women leave
working life early, especially in the healthcare
sector: Sweden
Improving
working
conditions (2)
• Work-life balance initiative under the
European Pillar of Social Rights: EU
• Right to flexible working for carers: UK
• Right to unpaid leave for carers: Lithuania
Helping to
combine work
and care

20.  There is a growing number of initiatives to promote a more
inclusive, late-career labour market: more quality jobs and
less long-term unemployment and poverty, particularly
among women.
 Some good practices among employers in age
management and flexible working arrangements exist but
their implementation remains poor, in particular in
SMEs.
 Promoting the employability of workers throughout their
working lives and strengthening employment
opportunities at an older age remain crucial policy
objectives.
20
Summary