Ensuring remuneration for older persons : A phased-out model?

Abstract

"Although the employment situation of older persons has improved in recent years, older persons who are out-of-work are still seen as "difficult to place". Various labour market policy instruments are intended to improve the chances of these persons being reintegrated into the labour market. Support via the remuneration security for unemployed persons over 50 years of age is linked to the taking up of a job that is paid at a rate lower than their last one. The remuneration security payment then compensates for part of the loss in wages that has ensued. This in-work benefit instrument is thus aimed at persons who are in principle placeable but whose reservation wage lies above that which can be attained on the market on account of relatively high earnings in their previous job. At present, the remuneration security payment has been included in the list of labour market policy instruments on a temporary basis. To a certain extent, it is just being tested and will be examined properly within the context of the coming reform of instruments. This article shows where the remuneration security payment is placed within the tool box of labour market policy instruments, discusses why it is seldom taken advantage of at present, and indicates possible further developments." (Author's abstract, IAB-Doku) ((en))

Cite article

Dietz, M., Koch, S., Krug, G. & Stephan, G. (2011): Die Entgeltsicherung für Ältere: Ein Auslaufmodell? In: WSI-Mitteilungen, Vol. 64, No. 5, p. 226-233. DOI:10.5771/0342-300X-2011-5-226