Calling older workers back to work

Population ageing in advanced economies could have significant macroeconomic implications, unless more individuals choose to participate labour markets. In this context, the steep increase share of older workers who remain economically active since mid-1990s is an overlooked yet encouraging trend. We identify drivers rise participation elderly relying on cross-country and individual-level data from over past three decades. Our findings suggest that bulk their driven by gains educational attainment changes market policies, such as tax benefit system, pension reforms. Urbanization increasing role services also contributed, while automation weighed participation.