Older Unemployed Individuals and Reskilling Policies: an European Comparison

This study investigates the effects of training policies on unemployed individuals over the age of 50, a demographic that faces pronounced challenges in labor market reintegration (Støren and Børing, 2018). The research uses longitudinal data from the Survey of Health, Ageing, and Retirement in Europe (SHARE) to assess the impact of training programs on three key dimensions: the ease of securing new employment, the duration of unemployment, and job satisfaction upon re-employment. Older workers are disproportionately affected by structural labor market transformations, including skill obsolescence and age-based discrimination (Rubenson and Desjardins, 2009). Training policies are often championed as tools for supporting these individuals, yet their efficacy within this cohort is underexplored. By leveraging SHARE’s comprehensive data, which captures employment trajectories, training participation, and subjective well-being across multiple time points, this study offers new insights into the role of training in managing labor market transitions for older individuals. Drawing on Esping-Andersen’s and his successor's typologies of welfare state regimes, this study situates the findings within the broader political economy of welfare state change. The ability of welfare states to address the needs of older unemployed workers is a crucial indicator of their capacity to adapt to demographic shifts and labor market transformations. Training initiatives, as an extension of active labor market policies, represent a key mechanism for supporting labor market transitions in liberal, conservative-corporatist, social-democratic, and mediterranean welfare regimes alike (Boeren et al., 2010). However, their design and effectiveness vary significantly depending on the institutional and policy frameworks of these regimes. The findings reveal that participation in training programs significantly enhances the likelihood of re-employment, particularly for individuals who have faced prolonged periods of unemployment. Additionally, training is associated with a notable reduction in the average duration of unemployment, demonstrating its effectiveness in expediting labor market reintegration. Beyond employment outcomes, the study finds that trained individuals report higher levels of job satisfaction, potentially reflecting improved skills alignment, confidence, and adaptability to new job roles. These results hold critical implications for policymakers navigating the challenges of welfare state reform in turbulent times. Tailored training initiatives that address the unique needs of older unemployed individuals can facilitate smoother labor market transitions, fostering not only individual resilience but also broader economic and social benefits. By reactivating a valuable segment of the workforce, these programs represent a key policy lever in the evolving landscape of political economy and welfare state change. Bibliography: Boeren, E., Nicaise, I., & Baert, H. (2010). Theoretical models of participation in adult education: The need for an integrated model. Rubenson, K.; Desjardins, R. 2009. “The impact of welfare state regimes on barriers to participation in adult education”, Adult Education Quarterly. Støren, L. A., & Børing, P. (2018). Immigrants’ participation in non-formal job-related training. International Journal of Lifelong Education, 37(5), 598–614.