Italy : vieillissement et politique de l’emploi.

132 Pages·2004·2.55 MB·English

by  OECD

«
Ageing and Employment Policies A
g
e
Italy in
g
a
In the face of rapid population ageing and the trend towards early retirement, there is a need n
d
to promote better employment opportunities for older people. Much has been said about E
m
the need for reform of old-age pensions and early retirement schemes but this may not be Ageing and Employment
p
sufficient to raise employment rates for older people significantly or to reduce the future risk lo
y Policies
of labour shortages. Both governments and firms will need to take active measures to adapt m
wage-setting practices to ageing workforces, to address the extent to which other welfare e
n
schemes act as pathways to early retirement, to tackle age discrimination and to improve t P
the job skills and working conditions of older workers. In addition, older workers will need to o
change their own attitudes towards working longer and acquiring new skills. Little is known lic Italy
about what countries have been doing or should be doing in these areas. ies

This report on Italy is part of a series of around 20 OECD country reports that are intended It
a
to fill this gap. Each report contains a survey of the main barriers to employment for older ly
workers, an assessment of the adequacy and effectiveness of existing measures to overcome Vieillissement et politiques
these barriers and a set of policy recommendations for further action by the public authorities
and social partners. de l’emploi
This report is based on the proceedings of a seminar and is published in English only.
However, a French translation of the Executive Summary and Recommendations has been
included in this volume.
In the same series:
Belgique
Czech Republic
Finland
Japan
Luxembourg
Norway
Spain
Suisse
Sweden
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ISBN 92-64-01703-8
81 2004 14 1 P
Ageing and Employment Policies
(Vieillissement et politiques de l’emploi)
Italy
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
ORGANISATION FOR ECONOMIC CO-OPERATION
AND DEVELOPMENT
Pursuant to Article 1 of the Convention signed in Paris on 14th December 1960,
and which came into force on 30th September 1961, the Organisation for Economic
Co-operation and Development (OECD) shall promote policies designed:
– to achieve the highest sustainable economic growth and employment and a
rising standard of living in member countries, while maintaining financial
stability, and thus to contribute to the development of the world economy;
– to contribute to sound economic expansion in member as well as non-member
countries in the process of economic development; and
– to contribute to the expansion of world trade on a multilateral, non-discriminatory
basis in accordance with international obligations.
The original member countries of the OECD are Austria, Belgium, Canada, Denmark,
France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway,
Portugal, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States.
The following countries became members subsequently through accession at the dates
indicated hereafter: Japan (28th April 1964), Finland (28th January 1969), Australia
(7th June 1971), New Zealand (29thMay1973), Mexico (18th May 1994), the Czech Republic
(21st December 1995), Hungary (7th May 1996), Poland (22nd November 1996), Korea
(12th December 1996) and the Slovak Republic (14th December 2000). The Commission
of the European Communities takes part in the work of the OECD (Article 13 of the
OECDConvention).
© OECD 2004
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– 3
FOREWORD

FOREWORD
Older people offer tremendous potential value to businesses, the economy
and society. Unfortunately, they often represent an untapped and discriminated-
against resource, as many public policy measures and private workplace
practices pose serious barriers to work, both paid and unpaid. Many of these
policies and practices are relics from a bygone era. There is a need to look
beyond traditional stereotypes about ageing in order to benefit from the growing
numbers of older citizens, many of whom would, in fact, choose to work for
longer given appropriate policies and workplace practices.
The OECD has reported extensively on public pension and early retirement
systems and the need for reforms of these systems to cope with population
ageing. However, these reforms will not be enough to encourage later
retirement and to reduce the risk of future labour shortages. Measures are also
required to adapt wage-setting practices to greying workforces, to tackle age
discrimination and negative attitudes to working at an older age, to improve job
skills of older people and their working conditions, and to better “activate”
older job-seekers. Relatively little is known about what countries have been, or
should be doing, in these areas. Therefore, in spring 2001, the OECD
Employment, Labour and Social Affairs Committee (ELSAC) decided to carry
out a thematic review of policies to improve labour market prospects for older
workers covering both supply-side and demand-side aspects.
For the purpose of this thematic review, it was decided to define older workers
as all workers aged 50 and over. The age of 50 is not meant to be a watershed in
and of itself in terms of defining who is old and who is not. Perceptions about being
old are inherently subjective and only loosely connected with chronological age.
However, in many countries, the age of 50 marks the beginning of a decline in
labour force participation rates by age. Moreover, to facilitate international
comparisons, it is preferable to refer to the same age group for all countries. Thus,
all references to “older workers” in this report should be taken as shorthand for
workers aged 50 and over (or in some cases, because of data constraints, workers
aged 55 and over), and should not be seen as implying that all workers in this group
are “old” per se.
AGEING AND EMPLOYMENT POLICIES: ITALY – ISBN-92-64-01703-8 © OECD 2004
4 –
FOREWORD

This report on Italy is one in a series of around 20 OECD country reports
that will be published as part of the older worker thematic review, which has
been developed by Raymond Torres. It has been prepared by Anne Sonnet from
the OECD and Andrea Baranzini from the Geneva School of Business
Administration, Jean-Marc Falter and Giovanni Ferro Luzzi from the University
of Geneva. Technical and statistical assistance was provided by
Alexandra Geroyannis and Clarisse Legendre. A draft of the report was
discussed at a seminar in Rome on 9 March 2004 on “Ageing and Employment
Policies in Italy”, which was organised by the Italian Ministry of Labour and
Social Policies. Discussants at the seminar included representatives of the
national authorities and the social partners, as well as several academics. The
final report, which incorporates the comments received at the seminar, is
published in this volume on the responsibility of the Secretary-General of the
OECD.
* * *
This report is based on the proceedings of a seminar and is published in
English only. However, a French translation of the Executive Summary and
Recommendations has been included in this volume (p. 19).
* * *
AGEING AND EMPLOYMENT POLICIES: ITALY – ISBN-92-64-01703-8 © OECD 2004
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TABLE OF CONTENTS

TABLE OF CONTENTS
EXECUTIVE SUMMARY AND RECOMMENDATIONS........................9
The challenge ahead: a rapid ageing process and early labour market exit 9
What has been accomplished so far?.........................................................9
Areas where further reform is required...................................................11
RÉSUMÉ ET PRINCIPALES RECOMMANDATIONS...............................19
INTRODUCTION......................................................................................31
Chapter 1. THE CHALLENGE AHEAD..................................................33
1. The demographic challenge..........................................................33
2. Potential economic and social impacts..........................................36
3. Key issue: promoting higher rates of participation
among older people and better employment opportunities............41
Chapter 2. CURRENT LABOUR MARKET SITUATION
OF OLDER WORKERS.........................................................43
1. Activity and inactivity among older people..................................43
2. Employment situation of older workers........................................46
3. Unemployment: a Southern, female and youth problem...............51
4. The transition to retirement: a complex picture............................54
Chapter 3. PROTECTING PEOPLE WHILE ENHANCING WORK
INCENTIVES: THE ROLE OF THE WELFARE SYSTEM..57
1. Main challenges faced by the Italian welfare system....................57
2. The reforms of the 1990s and the current situation.......................61
3. The complementary pension system.............................................73
4. Other social protection instruments..............................................77
5. Key issue: working longer............................................................79
AGEING AND EMPLOYMENT POLICIES: ITALY – ISBN-92-64-01703-8 © OECD 2004
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TABLE OF CONTENTS

Chapter 4. REMOVING DEMAND-SIDE BARRIERS............................83
1. Employment practices of firms.....................................................83
2. Employment protection................................................................85
3. Mobility and tenure......................................................................89
4. Wage profile by age.....................................................................91
Chapter 5. STRENGTHENING EMPLOYABILITY................................95
1. Employment conditions................................................................95
2. Older people’s attitudes to work.................................................103
3. Educational attainment of older workers.....................................106
4. Employment services for older people........................................116
Chapter 6. ENSURING POLICY COHERENCE AND
COMPREHENSIVENESS....................................................119
1. Alternative ways to boost participation and employment............119
2. Are older workers working at the expense of other workers?......120
3. Ensuring policy coherence..........................................................122
4. Conclusion.................................................................................123
BIBLIOGRAPHY....................................................................................125

List of Boxes
Box 3.1. Reforms of the Italian pension system in the 1990s.................63
Box 3.2. Transferring the trattamento di fine rapporto (TFR)
to complementary pension funds.............................................77
Box 3.3. Current pension reform proposals (May 2004)........................80
Box 4.1. The Biagi Law........................................................................88
Box 4.2. High separation rates for older Italian workers........................89
Box 5.1. Literacy skills fall with age...................................................110
Box 5.2. Vocational training programmes for older workers...............114
Box 5.3. Promoting lifelong learning and vocational training
among experienced workers: the new French agreement.......115
Box 5.4. The employment service network in Italy..............................118

AGEING AND EMPLOYMENT POLICIES: ITALY – ISBN-92-64-01703-8 © OECD 2004
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TABLE OF CONTENTS

List of Figures
Figure 1.1. Life expectancy at birth and total fertility rate in Italy,
1970-2050...........................................................................34
Figure 1.2. Demographic and economic dependency ratios,
2000-2050...........................................................................35
Figure 1.3. Labour force growth in Italy, 1970-2050.............................37
Figure 1.4. Labour force growth in OECD countries, 1950-2050..........40
Figure 1.5. Ageing labour force over the next 50 years in Italy.............41
Figure 2.1. Estimates of mobilisable labour supply in Italy and
the OECD as a whole, 2001................................................46
Figure 2.2. Employment rates of older workers by gender
in OECD countries, 2002....................................................47
Figure 2.3. Employment rates by age and gender in Italy, 1983-2002...48
Figure 2.4. Employment rates by gender and region in Italy, 2002........49
Figure 2.5. Unemployment rates by age and gender
in OECD countries, 2002....................................................50
Figure 2.6. Unemployment rates by age and gender in Italy,
1993-2002...........................................................................51
Figure 2.7. Unemployment rates by age and educational attainment
in Italy, 2001.......................................................................53
Figure 3.1. Average effective age of retirement by gender
in Italy, 1960-2002..............................................................58
Figure 3.2. Effective and official age of retirement by gender
in OECD countries, 1997-2002...........................................59
Figure 3.3. Public expenditure on old-age pensions
in some OECD countries, 2000-2050..................................60
Figure 4.1. Job tenure by age and gender in selected
OECD countries, 2000........................................................90
Figure 4.2. Age-earnings profiles by gender
in Italy, 1991, 1995 and 2000..............................................92
Figure 4.3. Age-earnings profiles by gender in selected
OECD countries, early 2000s..............................................93
Figure 5.1. Manual workers by age and gender, 2002...........................97
Figure 5.2. Part-time work by age and gender
in OECD countries, 2002....................................................99
Figure 5.3. Inactive persons of 55-64 who would like to work,
1997..................................................................................105
Figure 5.4. Educational attainment of workers aged 50-64
by gender in some OECD countries, 2001.........................107
AGEING AND EMPLOYMENT POLICIES: ITALY – ISBN-92-64-01703-8 © OECD 2004
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TABLE OF CONTENTS

Figure 5.5. The rise expected in education level of
older workers, 2000-2025..................................................108
Figure 5.6. Employment rates by age, gender and
educational attainment in Italy, 2001.................................109
Figure 5.7. Computer skills by age in Italy, 2000................................111
Figure 5.8. Incidence of job-related training for workers
by age in selected OECD countries...................................112
Figure 6.1. Younger workers are not substitutes for older workers......121

List of Tables
Table 1.1 Participation rates by age and gender, 2000.........................36
Table 1.2. Labour force growth under various scenarios in Italy,
2000-2050...........................................................................38
Table 2.1. Labour market status by age and gender in Italy
and OECD, 2001.................................................................44
Table 2.2. Unemployment rates by age, gender and region in Italy,
2002....................................................................................52
Table 2.3. Incidence of long-term unemployment
in some OECD countries, 2002...........................................53
Table 3.1. Decomposition of changes in old-age pension expenditures
spending in OECD countries, 2000-2050............................62
Table 3.2. Projected distribution of Italian pensioners
under old and new schemes, 2002-2050..............................65
Table 3.3. The gradual increase in the requirements
for seniority pensions in Italy..............................................68
Table 3.4. Gross replacement rates of the pension system in Italy,
2003-2050............................................................................70
Table 3.5. Importance of the complementary pension system in Italy,
2001....................................................................................76
Table 4.1. Overall strictness of protection against individual dismissals
in OECD countries in 2003.................................................86
Table 5.1. Italian older employees by industry and occupation, 2001...96
Table 5.2. Temporary work contracts in some OECD countries,
2002..................................................................................100
Table 5.3. Measures of job satisfaction in Italy, 1995........................103
Table 5.4. Changes in retirement expectations in Italy,
1989/91-1995/98...............................................................105
AGEING AND EMPLOYMENT POLICIES: ITALY – ISBN-92-64-01703-8 © OECD 2004
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EXECUTIVE SUMMARY AND RECOMMENDATIONS

EXECUTIVE SUMMARY AND RECOMMENDATIONS
The challenge ahead: a rapid ageing process and early labour market exit
A rapid process of population ageing is currently underway in Italy and is
more pronounced than in most other OECD countries. Since the early 1970s,
fertility rates have declined steeply and, today, are among the lowest in the
world. At the same time, longevity has increased significantly. Together, these
two factors explain why Italy currently has the highest old-age dependency ratio
among OECD countries after Sweden. The old-age dependency ratio (number
of individuals 65 and over as a proportion of population aged 20-64) reached
almost 30% in 2000 and will more than double by 2050. Only Japan is expected
to have a much higher ratio in 2050.
These demographic trends are likely to result in slower long-term
economic growth and will put increased strain on public expenditures that are
already high by the standard of other OECD countries. Exacerbating these
problems is the fact the Italian pension system is particularly expensive, and it
still encourages early withdrawal from the labour market. Consequently, older
workers in Italy tend to exit the labour market earlier than in most other OECD
countries. Indeed, the employment rate of older people is particularly low in
Italy. In 2002, only 56% of men aged 50-64 were employed and the
corresponding proportion for women was 27%, 13 and 21 percentage points
below the OECD average respectively. Italy is also one of the countries where
the gap between the employment rate of older men and women is the largest.
The pay-off to encouraging older workers to remain longer in the
workforce could be considerable in terms of higher economic growth as well as
financial sustainability and social adequacy of social protection systems.
What has been accomplished so far?
The 1990s were marked by three major pension reforms (1992, Amato
Reform; 1995, Dini Reform; and 1997, Prodi Reform). As a result of these
reforms, the new system, while remaining financed on a pay-as-you-go basis,

AGEING AND EMPLOYMENT POLICIES: ITALY – ISBN-92-64-01703-8 © OECD 2004