1. The goal and contents of the study
UN defined an ageing society if the weight of 65 or more years old people is greater than 7% among total population in the population structure of an economy. In 2002, National Statistical Office Republic of Korea (hereafter NSO) reported the weight of 65 or more years old people among total population in Korea is 7.9% and forecasts 14.5% in 2019.
According to keep going fast changing to an aging society, the changing of the age structure in labor market, an increasing demand for social welfare, an increasing issues for old people, a culture change of old people and development of silver industry etc. are changing most significantly. However this study is focused of issues for human resources development for old people's based on labor market changing. The central focus of this study is to increase job competence and employment rate of old people who experienced main occupational job in their life cycle based on this research empirical analyses. Research and empirical study composed of 5 main parts.
1) This study surveys the current employment institutions and policies for old people in labor market. The first survey issues are domestic materials. The second survey are the materials of three developed countries, U. S. A, the British Kingdom and Japan.
2) This report includes statistical random variable data, occupational labor force rate, wage level, educational level, job year and status etc. through firm survey and house hold survey raw data made by Korean government.
3) This empirical study estimates the valuable property of old people who are resign and seeking another job to enter labor market again by estimating occupational rate of return to educational investment. Because property of old people effects decision making to find job in very limited low wage level jobs which are supplied situations in Korea.
4) This study also estimates the future occupational labor force rate by using logit model methodology.
5) This study reports the result of surveys by direct facing old people by questioning to compensate old people's shortage statistical data problems.
2. Empirical Findings
First, labor statistics analyses show that labor force rate of 50-54 years people is stable, 73.2% level, in 2002, it is very similar compared with younger group. But labor force rate of 55-59 years people sharply decreases 64.6%, that of 60-64 55.8%, 65+ years group 30.4%. Wage level of old people experienced white collar main job in life cycle is 240% higher than that of blue collar in 55-59 years group, 290% higher than in 60-64 years group and 65+ years group. And these random variable data are significantly different between job experienced old people of white color and blue color in labor market.
Second, empirical analysis estimation suggested the rate of return to educational investment of occupational old people worker. The results show us that the difference of the rate of return between white collar worker and blue collar worker exists a great inequality in labor market. In 60-64 years group, the rate of return of white collar worker is 2.4 times higher than that of blue collar worker in junior secondary educational level, 4.5 times in senior secondary level, 6.4 times in 2 years collage level, 7.4 times in university level. Other things being equal, this research team consider that this results strongly effects to the property formation of old people.
Third, another empirical estimation forecasts the labor force rate of old people in the future, by 2010 with using logit model. In the case of old-man, absolute number of economic activity population is forecasted to increase to 2,739 thousand people in 2005 year and to 2,256 thousand people, in 2010 year. In case of old woman case - Except 55-59 years - old woman more than 60 years olds shows uptrend of the economic activity participation rate generally.
Specially, the economic activity participation rate is forecasted about 43.9% until 2010 and absolute economically population is forecasted to increase to 1,997 thousand people.
Forth, the survey show us that the old people's mind of reentering labor market is 63.2% after retiring. One reason of old people's finding job is to make money to live on and another reason is fond of loving work it self because of health. Reducing mind old people to find job they wish is difficult point to be recruited and what they can find job is an absolute low wage level.
3. Policy Issues
Policy issues deducted through empirical estimates using labor market analysis and survey about old-people policy is same as follow.
1) New random variable of related old-people adding to existing surveys and new old-people's statistics publication
2) Vocational training policy offer by individual's occupation career or status
3) Official recognition verification system on occupational ability spread out old-people
4) Prior employment occupation be extended and introduce quarter system by old-people's occupation or ability
5) It is need distinction extension to employment a basis rate by industry and gradation application by occupation
6) Occupation extension that is connected with society service activity
7) Vocational training programme assignment about old-people
8) Old-age countermeasure assignment of old-people
9) System introduction by self-administration of labor and management for old-people employment promotion
10) Realization need about wage peak system