Pensioners on the Russian labour market: trends of economic activity in pension age

Abstract

Population ageing is forcing researchers throughout the world to study more closely the economic activity of pensioners. In Russia in the last few years pensioner employment has demonstrated significant growth, while economic activity of the working age population has remained stable. This fact requires further investigation. One of the sources that can shed light on the trends in pensioners’ employment activity is data from The Russia Longitudinal Monitoring Survey (RLMS-HSE).

In this paper we use data from the Russian Statistical Office (Rosstat) and RLMS-HSE to analyze the trends of older people’s employment activity from the statutory age of retirement (55 for women and 60 for men) until age 70. We show that the recent increase in economic activity was typical for Russian pensioners of all age groups, but the highest growth was recorded for females 60-64 years old. The paper also reveals that among all working pensioners the share of those employed in education, healthcare, science, housing services, The ministry of internal affairs and the military-industrial sector – economic sectors where the role of the state is predominant – has increased for the period under review. Hence the most popular career options for those working at pension age are either to keep their previous job in the above-mentioned industries, or to change jobs, often for a less demanding position and/or informal employment. Unlike developed countries, the increase of economic activity of Russian pensioners has not been driven by increased flexibility of the labor market. Neither the share of self-employed nor the share of part-time employed pensioners increased in the period under study.