Labour Market Outcomes for Older Workers in Singapore

This technical report examines the impact of ageing on the labour market outcomes of older workers in Singapore. It outlines four primary channels through which ageing affects these outcomes: human capital, health, retirement, and job characteristics. The report details how older workers accumulate skills and knowledge, which can enhance productivity, but also face risks of skills obsolescence. It discusses the correlation between health deterioration and declining productivity, as well as the implications of retirement age norms on employment decisions. The findings indicate that while the probability of employment decreases with age, hourly real wages tend to rise for those who remain employed, particularly within the same firm. The report emphasizes the importance of flexible work arrangements to accommodate older workers' preferences for reduced hours, and it highlights the role of re-employment age in influencing employment probabilities. Overall, the report suggests that supportive policies are essential for enabling older workers to remain active in the labour market.