Workers age 50 and over in the Brazilian labor market: is there ageism?
| Autor | Amorim, Wilson |
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Introduction
Brazil, long regarded as having a relatively young population, is quietly expanding the participation of older people in the labor market. In human resources management (HRM) in Brazil, themes such as generations X, Y and Millennials still predominate, with a focus on the young and their perceptions and desires about work. In contrast, the position and opinion of the older age groups within the labor market are scarcely known. The way that these workers are hired, either in collective bargaining (with unions) or individually by companies, is also unknown (Cordeiro, Freitag, Fischer, & Albuquerque, 2013). However, population aging and the labor market are processes that are being increasingly studied in Brazil (Carvalho & Wong, 2010). This paper deals with the inclusion of workers age 50 and over in the Brazilian labor market. The delimitation of this group as older workers is aligned with Parry and Harris (2011) and Weiss and Bass (2002).
Thus, we intend to answer herein the following research question:
RQ1. Are workers age 50 and over facing ageism (discrimination against people on the basis of their age) in Brazilian companies?
Considering this question, the overall objective of the work is to bring up evidence about the existence of ageism (prejudice against people on the basis of their age). For this, a survey was conducted on private companies' requirements for workers, focusing on the profile of this workforce in terms of gender, education and time with the company from a longitudinal perspective. The main database relates to the formal labor market, based on the period of the Annual Social Information Report (RAIS) from 2011 to 2014. In a comparative way, data are also presented on requirements for workers by a group of companies that orient their HRM practices in order to be recognized as one of the best employers in the market. The database used is from the survey "Melhores Empresas para Voce Trabalhar--MEPT" (Best Companies To Work For). This research annually compiles data from hundreds of companies operating in Brazil, regarding their HRM policies and practices, as well as the perceptions of their employees regarding the work environment. From this database, information on human resources management policies and practices of these companies, focusing on the group of older workers, will also be analyzed.
The paper is organized as follows. In addition to this introduction, there is a topic in which the aging of the labor market in the international and the Brazilian national spheres is conceptually and historically treated, as well as how this fact has attracted attention of public policy makers, companies and researchers. This topic presents the evolution of the participation by age group in the Brazilian labor market. The third item presents the methodology and characteristics of the data used. In the fourth section, we present the analysis of the data found, and in the fifth section, the final considerations.
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Ageing and the labor market
Despite all the economic instabilities experienced in recent decades, it has become clear that technological advances on issues related to health and basic sanitation, among others, have enabled a continuous improvement in people's living conditions. One of the consequences of this advance is population aging, one of the most important contemporary phenomena.
This phenomenon affects the organization of societies and changes family dynamics, directly influencing people's lives as well. In the context of public policies, population aging affects sensitive areas such as social security, education and the labor market, posing difficult questions for governments and their respective voters. The challenge that countries must face is the process of demographic transition, which is characterized by the passage from a stage defined by national populations with high fertility and mortality, and a preponderance of younger populations, to their opposite, in which lower fertility and mortality significantly increase the higher proportion of the elderly (European Commission, 2011). In different situations, according to their economic and social development conditions, there are countries that have already gone through this process--e.g. the USA, Sweden, France and others, such as Brazil, Singapore, Colombia and China, in which this transition is happening in an accelerated way (World Bank, 2011; DIEESE, 2016).
It is also observed that there is a delay in the arrival of young people in the labor market, which reduces the relative participation of this group among the total number of workers in this space of social and economic relations. At the same time, the proportion of older people in the labor market rises, which may contribute to causing the unemployment of younger people. These changes attract the attention of institutions. The OECD (2013) reports that due to several factors, such as higher education and health levels, along with policy reforms, aimed at incentives to continue working to an older age, older workers in many countries are postponing their retirement.
The International Labor Organization (ILO) and the World Bank are concerned about the existence of ageism in society. Ageism arises from social relations and attitudes adopted about inherent characteristics of an age group, stereotyping it negatively (Ghosheh, 2008). One consequence of ageism is age discrimination, which, in the case of older workers, assumes an association between aging and productive decline. From that point forward, the difficulties faced by older workers in maintaining jobs within companies, or even in their search for employment, are justified (ILO, 2011).
The international literature identifies age stereotypes more commonly associated with older workers: low productivity, resistance to change, lower ability to learn, shorter tenure, higher costs (Posthuma & Campion, 2009). Such stereotypes are reflected in managers' negative attitudes toward the decision to hire or even retain older employees (Fasbender & Wang, 2017).
The international literature reports three reasons for the low presence of companies with proactive practices regarding the retention of older workers: the persistence of negative stereotypes regarding this group of employees, age discrimination and the lack of knowledge of how to retain them in companies (Armstrong-Stassen, 2008).
The concern about age prejudice stimulates the proposition of public policies to fight such discrimination (ILO, 2011). The ILO developed Recommendation No. 162 (1980) specifically to address the employment and occupation of older workers. This Recommendation--similar to the Decent Work guidelines adopted by the entity in the late 1990s--stresses the importance for workers in the over 50 age group of having the right to equal opportunities, training/vocational development, access to job security and career development. Its strongest recommendation for this group of workers even states that, in the transition from work life to freedom of activity, retirement should be voluntary (ILO, 1980). Initiatives in this direction were also taken within the framework of the European Union, which influenced its member countries (Parry & Tyson, 2009).
Although these policies may have little effect in times of severe recession (Neumark & Button, 2014)--such as during the 2008/2009 crisis and since 2015 in Brazil--the importance of public policies regarding the inclusion of older workers in the labor market is undeniable.
In fact, the OECD has a specific recommendation for employers to adopt managerial practices and support public awareness campaigns to eliminate age discrimination. The OECD recommendation also suggests that employers and workers' representatives jointly identify mechanisms to facilitate the retention of older workers (OECD, 2015). These managerial practices and mechanisms--such as specific health concerns and professional qualification for new career choices after retirement--have become more important for companies in developed countries (Armstrong-Stassen, 2008).
The ILO and OECD guidelines respond to the ethical needs of society for changes regarding the inclusion of older workers in the labor market. On the other hand, they are also aligned with studies that attest to the relevance of adopting managerial policies that contemplate diversity even as a competitive advantage (Hunt, Prince, Dixon-Fyle, & Yee, 2018). In developing countries with large populations and heterogeneous labor markets, these guidelines are also important given the short time remaining for the necessary changes in their social security systems, national cultures and managerial practices.
2.1 Ageing and the labor market in Brazil
In the Brazilian case, the demographic transition takes place in an accelerated way and emphasizes the need for important decisions regarding social security (Jorgensen, Rocha, & Fruttero, 2011). In Brazil, the public social security system gets its funding from the mandatory individual contributions of workers in formal occupations, throughout their working life, to constitute the national retirement fund. In retirement, the concept of solidarity prevails (those who are now employed support those who have reached retirement age), and a minimum of 30 years and 35 years of contribution is required, respectively, for women and men to retire (with a maximum limit equivalent to $1,500.00) (Instituto Nacional de Seguridade Social, 2018). With the aging of the population, as in the case of various countries in the world, measures are being considered to reform the social security system, such as increasing the minimum contribution time or even establishing a higher minimum age for retirement, in order to achieve financial viability of the public social security fund.
Moreover, after the year 2000, the labor market was heating up with the reduction of unemployment rates and the increase in the average income of employed...
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