Older workers’ education and earnings among OECD countries

Abstract

Purpose The purpose of this study is to identify to what extent individual-level factors (age, gender, participation in formal and non-formal education and levels of skills use at work) and country-level factors (social capital factors, national competitiveness and gross domestic product [GDP]) have contributed to older generations’ earnings in developed countries. Design/methodology/approach Utilizing the data from the Organizational Economic Co-operation and Development Skills Outlook 2013 survey, GDP and the World Economic Forum’s annual Global Competitiveness Report, this study adopted a multilevel path analysis method to measure cross-country-level effect of the study variables on older workers’ earnings. Findings Study results indicated that age, gender, non-formal education, use of influencing and task discretion skills at work at the individual level, and GDP, social trust, and higher education and training at the country level were identified as influential factors for older workers’ monthly earnings. Originality/value With more aging societies worldwide, the traditional view of the aging workforce has been affected by the desires and needs of the elderly. This study contributes to the literature by identifying what individual- and country-level factors should be considered for policymakers to improve the economic benefits of older generations living in developed countries.