Rethinking the Economic Importance of Older Adults’ Employment: A Conceptual Framework for Sustainable Labour Market Transformation in Ageing Societies
DOI:
https://doi.org/10.63775/gcvesw79Keywords:
Population ageing, older workers, labour market participation, functional ageing, pension systems, sustainabilityAbstract
Population ageing is reshaping labour markets, pension systems, and the fiscal sustainability of contemporary welfare states. Contemporary research increasingly recognises old age as a socially constructed and functionally differentiated category rather than a self-evident life stage defined solely by chronological age. This shift in perspective calls for a more systemic rethinking of how ageing is conceptualised and addressed in economic and policy analysis. While existing research has examined ageing, retirement, and later-life employment from multiple disciplinary perspectives, it remains fragmented and lacks an integrated analytical structure. This paper addresses this gap by developing a conceptual framework that links demographic ageing, institutional settings, individual capacities, and labour market participation patterns with multidimensional sustainability outcomes. The framework conceptualises later-life employment as a heterogeneous and dynamic process shaped by structural drivers, reframing mechanisms, and enabling or constraining conditions. By doing so, it advances the literature by explaining how older adults’ labour market participation contributes not only to labour supply and economic growth, but also to productivity, knowledge retention, social inclusion, and the long-term sustainability of welfare systems. The paper further outlines a research agenda for empirically testing the proposed relationships using advanced econometric approaches capable of capturing heterogeneity, non-linearity, and causal dynamics.
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