Inequalities and Age-Related Disadvantages in Late Working Life and Labour Market Exit in Sweden

Sammanfattning: The participation of older individuals in the labour market has increased as a result of recent demographic and societal shifts, as well as reforms of pension and social security systems. However, employment inequalities in late working life and labour market exit persist. Early exit from the labour market affects the sustainability of public finances and the availability of skilled labour, as well as the financial, social, mental, and physical well-being of individuals. So far, the literature on employment in late working life and labour market exit has mainly focused on individual choices. However, employment and exit in late working life are complex phenomena that depend on a variety of factors, such as individual life courses and labour market conditions. Based on Swedish register data, this thesis examines inequalities in employment and labour market exit among people aged 55 and over in Sweden, and the role of life course and age-related labour market disadvantages, including studies on: inequalities and diversity between gender and educational groups (Study 1); the relationship between mid-life labour market attachment and patterns of labour market exit (Study 2); age-related disadvantages in unemployment risk and re-employment chances (Study 3); and the link between older workers’ hiring chances and the characteristics and labour market conditions of employers (Study 4). Study 1 shows that employment trajectories, including the receipt of pension, unemployment and disability benefits, are structured by gender and education. While women tend to exit the labour market earlier than men and are more likely to receive disability benefits, men are more likely to move into self-employment or to receive unemployment benefits. Study 2 demonstrates that individuals with low labour market attachment early (at age 30) or late (at age 50-59) in their working careers are more likely to exit the labour market early, while low labour market attachment in mid-career (at age 40-49) is linked with later labour market exit. However, low labour market attachment in all career stages is associated with the receipt of work-related benefits in the year of labour market exit. Study 3 reveals that older workers (in their late 50s and early 60s) are less likely (compared with workers in their early 50s) to be wage-employed after a spell of unemployment, and more likely to become self-employed, to remain unemployed, to exit the labour market, or, if re-employed, to experience downward mobility (lower wage or part-time unemployment). Finally, Study 4 shows that the age and educational composition of employees, combined with the sectoral affiliation of employers and local labour market conditions, are directly related to the likelihood of hiring older workers. That is, older workers are more likely to be hired in establishments with a high share of older and low educated employees, in the health, education, transport and storage sectors, and in municipalities with a high share of older people of working age, a high unemployment rate, and a low share of unfilled vacancies. This thesis makes a unique contribution to the literature on inequalities and age-related disadvantages in late working life, as well as on policies to extend working life and tackle inequalities in old age. The overall conclusion is that the diversity of employment trajectories is socially structured and related to individuals’ employability, workability, and flexibility to change employment or exit from the labour market – structured by individual life courses and labour market conditions. Policies towards equal and prolonged working lives should focus on sustainable working conditions, lifelong learning, and discriminatory practices, not only in late working life but throughout the overall working life course.