D5.2 Working paper: the effect of COVID-19 on involuntary and voluntary work exits among older workers

This working paper is part of PATHS2INCLUDE, a research project funded by the European Union’s Horizon Europe (101094626). The overall objective of PATHS2INCLUDE is to disentangle the dimensions of discrimination and unequal opportunities in the labour market to gain knowledge on how to develop inclusive labour markets for persons in vulnerable situations. A key goal is to understand how contextual factors disproportionately expose certain groups to risk and vulnerability throughout their life course and during critical transitions. The working paper is part of Work Package 5, with the overarching goal to study employment policies and institutional and individual factors affecting employment among older workers.In this working paper we address the broader issue of older individuals’ participation in the labour market in the context of the COVID-19 pandemic. The focus is twofold: on the one hand, it examines employment trends, and the dynamics of both voluntary and involuntary labour market exits among older workers during the pandemic period, with particular attention to how the crisis influenced retirement and withdrawal decisions. On the other hand, it investigates a different but closely related phenomenon: the risk of labour market exclusion due to prolonged inactivity among older individuals who are not formally retired but are no longer engaged in employment. This situation may reflect hidden forms of marginalisation, especially in contexts where reintegration into the workforce becomes increasingly difficult with age.