The Impact of the Longevity Workforce on the Resilience of Spain’s Economy
Commissioned by CENIE and the Fundación General de la Universidad de Salamanca
This study investigates how Spain’s ageing workforce should be seen as an antidote to financial shocks and an ingredient for future economic success.
Like many advanced economies, Spain faces the challenges of an ageing population. The number of people over the age of 50 is predicted to make up around half of the total population in Spain by 2050.
In this study commissioned by CENIE and the Fundación General de la Universidad de Salamanca, we looked at how the older workforce increased the resilience of Spanish firms to the economic shocks of the Great Recession between 2008 and 2014. We found that an older workforce helped Spanish firms make more sales, meant firms enjoyed higher employment growth rates, had a positive effect on firms’ productivity, and led to a rise in the net investment rate.
As a result, we were able to conclude that having a higher share of older employees, i.e., a longevity workforce, can make national economies more robust during economic and financial crises.
We recommend that policymakers use a mix of regulations and incentives for employers to take on large numbers of older workers. Regulatory options include eliminating age discrimination in all aspects of the workplace and supporting that with public awareness campaigns. Policymakers should also consider introducing incentives to encourage firms to hire and retain older workers such as wage subsidies for older employees.
By improving the labour market situation and the quality of the working environment of older workers, policymakers can boost their economy’s resilience to future shocks and see improvements in the outlook for growth and public finances.
The experts behind the research
Our Economic Consulting team are world leaders in quantitative economic analysis, working with clients around the globe and across sectors to build models, forecast markets and evaluate interventions using state-of-the art techniques. The lead consultants on this project was:
Johanna Neuhoff
Associate Director, Economic Consulting
Jan Sun
Senior Economist, Economic Impact
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