A research initiative at Leiden University has been awarded a significant funding boost to investigate ways to enhance the participation of older workers in the labor market. The project, led by Professor of Economics Egbert Jongen, has secured a €350,000 grant from Netspar and Instituut Gak, aimed at addressing the economic challenges posed by an aging population.
The study will focus on how employers and policymakers can support employees aged 60 and over in maintaining their health and productivity in the workplace. Many individuals reduce their working hours or retire entirely after reaching the statutory retirement age, which negatively impacts the economy. Jongen noted, “The decline in the number of older individuals in the workforce stems partly from employee preferences. However, employers also play a crucial role, as they appear less inclined to invest in older workers.”
The Netherlands faces a growing labor shortage, making it essential to tap into the potential of its older population. Jongen emphasizes that older workers can make a valuable contribution if they choose to remain employed longer. The research will analyze various company policies and their effectiveness in retaining older employees.
Jim Been, Associate Professor of Economics, will collaborate with Jongen, supported by a postdoctoral researcher. Together, they will work alongside scholars from Melbourne University, Queensland University, and the University of Mannheim. The project also includes partnerships with the CPB Netherlands Bureau for Economic Policy Analysis, various governmental ministries, and employers’ organizations such as VNO-NCW and MKB-Nederland.
The research is set to commence in January 2026 and aims to identify effective policies that help older workers remain healthy and productive. Jongen hopes the findings will contribute to a shift in how older employees are perceived, preventing them from being dismissed prematurely from the workforce.
With the backing of Netspar, known for funding innovative research on pensions and aging, this initiative highlights the pressing need for systemic changes in how society views and supports its aging workforce. The project promises to deliver insights that could be beneficial not only to the Netherlands but also to other nations facing similar demographic challenges.
