Extending working lives could increase OECD GDP by $2 trillion, says PwC
- Iceland tops the table, followed by New Zealand, Israel and Sweden
- Israel, Germany and Australia highest movers in rankings since 2003, while Mexico, Turkey and Greece have each fallen 12 places
- The UK remains mid-table – its absolute performance has risen over time but so has the OECD average performance
- Report looks at what this means for government and business.
For governments across the OECD, the priorities include:
- reforming pensions systems and providing other financial incentives to encourage later retirement;
- support training/retraining of older workers, particularly in response to technological changes such as increased automation; and
- introducing measures to combat age discrimination in all aspects of employment.
- Methodology: The PwC Golden Age Index combines national performance on the following labour market indicators (with relative weights shown in brackets): employment rate for 55-64 year olds (40% weight); employment rate for 65-69 year olds (20%); gender gap in employment for 55-64 year olds: ratio women/men (10%); incidence of part-time work for 55-64 year olds (10%); full time earnings for 55-64 year olds relative to 25-54 year olds (10%); average effective exit age from the labour force (5%); and participation rates in training: ratio 55-64 to 25-54 year olds (5%).
These indicators are normalised, weighted and aggregated to generate index scores for each country. The index scores are on a scale from 0 to 100, with the average OECD value in the base year of 2003 set to 50. However, the average index values for 2007, 2014 and 2015 can be higher or lower than this 2003 baseline.
All data are taken from the OECD. We focus mostly on the 55-64 age group for data reasons. We do, however, include total employment rates for 65-69 year olds in the index and look at all workers over 55 in calculating potential boosts to GDP from higher employment rates for older workers. The latest data available across the broad range of countries covered are for 2015.
- A copy of the PwC Golden Age Index is available at www.pwc.co.uk/goldenage.
- At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with more than 223,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.
PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.
John HawksworthPwC Chief EconomistUnited Kingdomjohn.firstname.lastname@example.org+44 20 213 1650
Mike DaviesDirector, Global CommunicationsUnited Kingdommike.email@example.com-+44 7803 974 136
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