Older workers in the Russian labor market: Trends in employment reallocation

Abstract

The paper analyzes changes in job opportunities of older workers in Russia in the period 2005—2017. The study uses the data from the Russian Labor Force Survey conducted by Rosstat. Changes in the occupational and industrial composition of elderly workers follow the trends pursued by other age groups: employment shifts from low- to high-skilled occupations, from physical to intellectual labor, and from material production to the service sector. We find a stronger polarization among older workers as their occupational structure is biased in favor of, on the one hand, the most and, on the other hand, the least qualified types of jobs. Employment of the elderly has fallen sharply in agriculture and manufacturing with a significant increase in trade, education, and health. Although the employment structure of older workers is generally more “traditionalist”, recent decades have witnessed its transformation in “progressive” directions, similarly to other age groups. These findings suggest that the legislated increase in the state retirement age is not likely to give rise to sizeable unemployment among the elderly. Most of them will be able to work in the occupations and industries previously dominated by young and prime-age workers.