FRANCE The

Table 3: Labour market transition rates among those who were unemployed in the previous year, age group 55-64,
selected years 1990-2000
Year Employed In subsidised employment Unemployed Pension Other
1990 21.7 — 41.2 28.8 8.4
1995 3.7 — 74.0 18.7 3.5
2000 4.3 2.4 68.0 19.4 6.0
Figure 2: Transition rates to unemployment by age,
selected year 1995-1998
percentage
7
6
5
4
3
2
1
1995
1996
1997
1998
0
48 49 50 51 52 53 54
age
55 56 57 58 59 60
Source: Rantala (2002)
Finns are active participants in adult education. More than half of
the working-age population take part in some form of adult
education annually. This is a significantly higher figure than in most
of the EU countries. However, the participation rate in adult
education falls sharply with age. Among those aged 55-64, only
about one third participates in adult training. The training gap
between different age groups is narrowing and less sharp in
employer-sponsored in-service training (Table 4). 5 About 38% of
men and 48% of women aged 55-64 received in-service-training in
2001.
Table 4: Share of employees in in-service training by age
and gender, 1990-2001
1991 1995 2000 2001
Men
25-64 41.4 47.5 43.4 44.1
55-64
Women
32.9 48.2 39.1 37.9
25-64 47.0 45.8 48.6 50.9
55-64 38.9 33.6 37.9 48.3
Source: Statistics Finland, In-Service Training Statistics
Closer scrutiny of the in-service-training statistics show, however,
that older employees with poor educational levels have a markedly
Spring 2003 | European Employment Observatory Review 75
Trends
Source: Sosiaali- ja terveysministeriö (2000b)
lower propensity to participate in training than their younger
counterparts. In 2000, the probability that an employee aged 55-59
with only a basic education would obtain in-service-training was
60% of that of a similar colleague aged 40-44.
Participation rates in adult education have also been increasing over
the past few years among older unemployed job seekers. In 2000,
about 19% of unemployed job seekers in the age group 55-64
participated in this kind of education.
The policy framework
There has been serious concern about the disincentives to active
ageing inherent in the social security system. The average pension
age of 59 is regarded to be far too low. The Government has
announced its long-term intention to raise this age to 61-62, to a
level closer to the formal retirement age of 65. Different measures
have been taken to achieve this goal.
Legal provisions on pensions
Regulations covering statutory pension schemes provide guidelines
for early exit behaviour in Finland; 98% of total expenditure on
pension benefits is statutory by nature. Pensions amount to 44% of
social welfare expenditure. In 2001, employers financed 41% of
social protection expenditure. Central government and
municipalities were responsible for nearly 38% of funding, the
insured themselves paid 12%, and the rest came from different
funds.
In addition to the ordinary disability pension there are four main
early retirement schemes available for older workers, each targeted
towards specific groups. 6 In 2001, nearly 16% of those aged 55 were
already receiving a pension, mainly due to disability. At the age of
64 almost 86% have retired.
Disability pension is payable to insured people between 16 and 65
who, on account of disease, defect or injury, are unable to maintain
their regular work or any other kind of work which, considering
their age, occupation, education and place of residence, would be
suitable for them. In 2001, 98% of young pensioners (16-54) received
a disability pension. About 40% of pensioners aged 55-64 were on a
disability pension.
A special type of disability pension, the individual early retirement
pension, is payable to people aged 60-64 whose capacity for work
has been permanently reduced. The individual early retirement
pension is awarded on less strict award criteria than the ordinary
disability pension. As part of an agreement of social partners on
pension reform, this pension option will be gradually removed, and
the last age cohorts who will be eligible to individual early
5 In-service training refers to such employer-sponsored training programmes which employees attend at full or reduced pay, or against full or partial compensation (in
money or in time off) for lost free time.
6 In addition there are special farmer’s pensions and ordinary old-age pensions that qualify for a pension before the age of 65.