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Sustainable Workforce Participation: Investing in Human Capital and Care for Future Prosperity

This publication explores challenges in workforce participation such as reducing overload, combating underutilization, and maintaining human capital. It criticizes current life course policies and proposes effective strategies to integrate care and human capital investments for a balanced approach. It emphasizes the need for all stakeholders - workers, employers, and government - to contribute towards enduring participation in the labor market.

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Sustainable Workforce Participation: Investing in Human Capital and Care for Future Prosperity

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  1. Arbeids- en Emancipatie-economie Towards enduring participation: investments in human capital and care Joop Schippers The Hague, June 4, 2004

  2. Arbeids- en Emancipatie-economie • Three challenges: • reduce the overload during the middle stage of life • combat under utilisation during the active old age • maintain and accumulate human capital during all stages of life

  3. Arbeids- en Emancipatie-economie • Current life course policy: • leave/consumption oriented • no incentives to invest in human capital • beneficial for high income groups only

  4. Arbeids- en Emancipatie-economie • Three threats to human capital investments …. • increasing labour market flexibility • ageing of the labour force • rapid technological change

  5. Arbeids- en Emancipatie-economie • …. resulting in: • less accumulation of experience • less investment in on-the-job training • less ‘new knowledge’ • more/faster depreciation

  6. Arbeids- en Emancipatie-economie • Effective life course policy • integrates investments in care and human capital • promotes working more hours over the life cycle • includes women and men and all income groups

  7. Arbeids- en Emancipatie-economie • Effective life course policy • balances the interests of workers, employers and the government • asks something of each party and offers something in return

  8. Arbeids- en Emancipatie-economie • Workers • benefits: child care, leave, facilities for human capital investments • costs: time/energy for HC-investments, postpone retirement (but better work)

  9. Arbeids- en Emancipatie-economie • Employers • costs: workers on leave • benefits: increase in labour supply, better qualified => more innovation, shared responsibility for HC-investment

  10. Arbeids- en Emancipatie-economie • Government • benefits:higher participation women and older workers, knowledge based society • costs: facilities for investments in care and human capital

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