Business students’ perceptions of an aging workforce, higher retirement age and youth unemployment
-
Author(s)Rahat RahatLink to ORCID Index: https://orcid.org/0000-0003-3048-0239
,
Olayemi Abdullateef AliyuLink to ORCID Index: https://orcid.org/0000-0003-4083-9153
,
Chux Gervase IwuLink to ORCID Index: https://orcid.org/0000-0002-6290-9864
-
DOIhttp://dx.doi.org/10.21511/ppm.17(4).2019.35
-
Article InfoVolume 17 2019, Issue #4, pp. 430-440
- Cited by
- 778 Views
-
179 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
The relationship between an aging workforce, higher retirement age, and youth unemployment has already been established in the available literature. However, the empirical research on the impact of an aging workforce, and higher retirement age on youth unemployment is limited, has conflicting results, has occurred mostly overseas, and has not considered the perceptions of young people who are about to enter the workforce. Hence, this paper aims to investigate the perceptions of the youth on the relationship between the aging workforce, higher retirement age, immigration policies, and youth unemployment. Structural equation modelling was used to analyze the responses of 183 business students. The findings establish that five relationships were supported out of seven hypothesized relationships. The key research finding reveal that immigration policies and higher retirement age are significantly related to youth unemployment. Lastly, the theoretical and managerial implications of the study were discussed, along with the limitations and recommendations for future research.
- Keywords
-
JEL Classification (Paper profile tab)J26, J61, J64
-
References43
-
Tables5
-
Figures2
-
- Figure 1. Conceptual framework
- Figure 2. Findings from the structural model
-
- Table 1. Measurement items, factor loadings, Cronbach’s alpha, and composite reliability
- Table 2. Squared multiple correlations (R2)
- Table 3. Goodness of fit index for the model
- Table 4. Results for the direct relationships
- Table 5. Mediation effect
-
- Armstrong, J. S., & Overton, T. S. (1977). Estimating nonresponse bias in mail surveys. Journal of Marketing Research, 14, 396-402.
- Beaudry, P., Green, D. A., & Sand, B. M. (2014). The declining fortunes of young since 2000. The American Economic Review, 104(5), 381-386.
- Bertoni, M., & Brunello, G. (2017). Does delayed retirement affect youth employment? Evidence from Italian local labour markets (IZA Discussion Paper No. 10733).
- Birrell, R., & Healy, E. (2013). Scarce jobs: Migrants or locals at the end of the queue?
- Boeri, T., Garibaldi, P., & Moen, E. (2016). A clash of generations? Increase in retirement age and labour demand for youth (WorkInps Paper No. 11422).
- Boeri, T., Garibaldi, P., & Moen, E. (2017). Closing the retirement door and the lump of door.
- Bryne, B. M. (2010). Structural Equation Modelling with AMOS: Basic Concepts, Application and Programming (2nd ed.). New York, USA: Routledge.
- Carvalho, P. (2015). Youth unemployment in Australia. Policy: A Journal of Public Policies and Ideas, 31(4), 36-43.
- Chmelova, K. (2013). Intergenerational conflict: Does longer working life of older generation threatens young employment in transition countries? (Master’s thesis).
- Chybalski, F., & Marcinkiewicz, E. (2014). Does the professional activity of older workers contribute to youth unemployment? A cross-section study of European countries. Business and Economic Horizons, 10(4), 238-252.
- Dean, L. (2018). Migration’s ’very powerful’ effect on aging population.
- Dhanjal, S., & Schirle, T. (2014). Workforce aging and the labour market opportunities of youth: Evidence from Canada (Working paper number 2014-9).
- Dustmann, C., & Preston, I. (2006). Is immigration good or bad for the economy? Analysis of attitudinal responses (Discussion Paper No. 06/04).
- Dustmann, C., & Frattini, T. (2014). The fiscal effects of immigration to the UK. The Economic journal, 124(580), 593-643.
- Foster, K. (2012). Delaying retirement: What does it mean for younger workers?
- Ghafar, A. A. (2016). Educated but uneducated: The challenge facing Egypt’s youth. Brookings Doha Center, 1-16.
- Hair, J. F., Black, W. C., Babin, B. J., Andersen, R. E., & Tatham, R. L. (2010). Multivariate data analysis (7th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
- Hill, R. (1998). What sample size is “enough” in internet survey research. Interpersonal Computing and Technology: An electronic journal for the 21st century, 6(3-4), 1-10.
- Isiaka, S. B., & Woli-Jimoh, I. A. (2017). Impact of statutory retirement age on youth unemployment in Kwara state, Nigeria. Archives of Business Research, 5(1), 182-192.
- Johnson, A. (2016). Addressing New Zealand’s youth unemployment. The Salvation Army social policy & Parliamentary Unit (62 p.).(Report).
- Kirk, S. (2016, October 19). Young New Zealanders’ crowded out of job market’ – Salvation Army.
- Kondo, A. (2016). Effects of increased elderly employment on older workers’ employment and elderly’s earnings in Japan. IZA, 5(1).
- Kreiger, J. (2014). Public pensions and immigration (Report).
- Li, L., Xi, H., &Ning, Y. (2016). Does delayed retirement influence the employment of young men? Journal of Residuals Science & Technology,13(8).
- Litwin, H., Achdut, L., & Youssim, l. (2009). Who supports delayed retirement? A study of older workers in Israel. Journal of European Social Policy, 9(3), 245-257.
- Loretto, W., Duncan, C., & White, P. J. (2000). Ageism and employment: Controversies, ambiguities and younger people’s perceptions. Aging and Society, 20(3), 279-302.
- MacLeod, P., Fitzpatrick, A., Hamlyn, B., Jones, A., Kinver, A., & Page, L. (2012). Attitudes to pensions: The 2012 survey (Department of Work and Pensions Research Report, No. 813).
- McGregor, J., &Gray, L. (2002). Stereotypes and older workers: The New Zealand experience. Social Policy Journal of New Zealand, 18, 163.
- Ministry of Business, Innovation & Employment. (2015). Community perceptions of migrants and immigration(Report).
- Ministry of Social Development. (2015). Inquiry into the barriers to young people entering employment across New Zealand workplaces and how these can be addressed (Report).
- Munnell, A., & Wu, A. (2013). Do older workers squeeze out younger workers? (Stanford Institute for Economic Policy Research Discussion Paper, No. 13-011).
- Muysken, J., Corvers, F., & Ziesemer, T. (2008). Immigration can alleviate the aging problem (Discussion Paper No. 07/2011-058). Netspar.
- Neumark, D., &Shupe, C. (2018). Declining teen employment minimum wages, other explanations, and implications for human capital investment (Mercatus Working Paper).
- Nunnally, J. C., & Bernstein, I. H. (1994). Psychometric theory (3rd ed.). New York, NY: McGraw-Hill.
- Ospina, J. H. (2015). Resource competition and ageism: A study of the influence of employment scarcity on the endorsement of ageist attitudes (Master’s thesis).
- Pettinger, T. (2016). The impact of an aging population on the economy.
- Preacher, K. J., & Hayes, A. F. (2008). Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models. Behavior research methods, 40(3), 879-891.
- Rahat, R., & Abdullateef, A. O. (2018, December). The conceptual model of perceived impact of aging workforce, higher retirement age, immigration policies on youth unemployment: Evidence from business students. Paper presented at Australia and New Zealand Business and Social Science Research conference, Auckland, New Zealand.
- Statista. (2018). Unemployment rate in the United States from 1990–2018 by age.
- Statistics New Zealand. (2013). Workers aged 55+ keen to stay working full-time.
- Sundali, J., Westerman, J. W., & Stedman, Y. (2008). The importance of stable income sources in retirement: An exploratory study. Journal of Behavioral & Applied Management, 10(1), 18-46.
- The Swedish National Board of Youth Affairs. (2007). Young people with attitude.
- United Nations. (2017). World population aging. Department of Economic and Social Affairs Population Division.
-
Population aging in terms of generational cohorts in the context of labor productivity in the Slovak Republic
Adriana Grenčíková 
,
Jana Španková ,
Richard Rigó ,
Monika Gullerová
doi: http://dx.doi.org/10.21511/ppm.21(4).2023.43
Problems and Perspectives in Management Volume 21, 2023 Issue #4 pp. 577-590 Views: 222 Downloads: 57 TO CITE АНОТАЦІЯThe aging of the population is the main global demographic trend of the 21st century and one of the main factors in the formation of supply in the labor market. This study focuses on the aging of the population, which, in the context of the labor market, represents a problem for countries to sustain economic growth. The aim is to determine, based on the analysis of available statistical data, the impact of population aging on labor productivity and the labor market in the Slovak Republic. It also seeks to define how to mitigate the effects of population aging on maintaining economic growth and social stability without raising the retirement age. The study analyzed statistical indicators, utilizing OECD population projections and linking them to macroeconomic indicators (GDP, employment). Assuming GDP growth (3%) and labor productivity (2%) per year while maintaining 70% employment in comparison with population growth presented in the OECD forecasts, there will be approximately 367,000 unfilled jobs on the labor market in the Slovak Republic. Proposed solutions include pension reforms, investment in innovation and education for increased productivity, support for families to raise birth rates, simplified employment of workers from third countries, and improved working conditions for women. Addressing women’s working conditions can help compensate for the shortage in the aging workforce when combined with other solutions.
