How to prolong labour market participation in the Republic of Croatia?

Abstract

The paper analyses the labour market for older workers from the point of view of prolonging their participation in the labour market in the Republic of Croatia. Due to unfavourable demographic situations, longer life spans and the threats to pension insurance systems, there have been many initiatives, in a number of countries, in the last couple of decades that have the goal of facilitating longer working lives. The current analysis has shown that older workers in the Republic of Croatia, despite their economic activity being lower than that of other countries, do have the additional working capacity that can permit longer labour market participation, without compromising the employment of younger cohorts. It has also shown that the labour market of the Republic of Croatia is not well suited to older age groups and that those with higher education and financial security, those who generally have the most opportunities, have the best chances for longer labour market participation; while the odds are against longer labour market participation for those with lower education, socioeconomic status and health, even if they might sometimes be willing to participate in the labour market.