Remuneration security : should it be scrapped?

Abstract

Despite rising employment figures for older employees, older persons out of work still only have minimal chances of reintegrating themselves back into the working world. The reasons for this partly lie with companies that are reluctant to employ older persons who are out of work; and partly they are a result of the higher wage expectations of this group of persons. 'If reductions in wages are not accepted, even if unemployment continues, then it will become more and more difficult for older persons who are out of work to find a job.' In 2003, the labour market policy instrument 'Entgeltsicherung' (wage security) was introduced to balance out such ensuing loss of wages when taking up a job. On account of the fact that it was seldom taken recourse to, and because of a lack of evaluation results, the 'Entgeltsicherung' (wage security) has been identified as a candidate for abolishment. However the authors ultimately plead for the instrument to be retained because it can additionally make a contribution towards securing the presence of skilled workers in individual establishments. (IAB)

Cite article

Dietz, M. & Koch, S. (2011): Entgeltsicherung: zum alten Eisen? In: Informationsdienst Altersfragen, Vol. 38, No. 4, p. 16-20.