Labour market institutions for an ageing labour force in Slovenia

Abstract

This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. 2  ECO/WKP(2020)56 LABOUR MARKET INSTITUTIONS FOR AN AGEING LABOUR FORCE IN SLOVENIA Unclassified OECD Working Papers should not be reported as representing the official views of the OECD or of its member countries. The opinions expressed and arguments employed are those of the author(s). Working Papers describe preliminary results or research in progress by the author(s) and are published to stimulate discussion on a broad range of issues on which the OECD works.

How to regulate minimum wage in light of contemporary social change: A case study of Slovenia

“…Slovenia is expected to face intensive population ageing in the coming years (Kajzer and Fajič 2016). The decline in the number of people of working age will become a limiting factor for economic growth over the next 10 years (Fialho and Høj 2020). In line with classical economic theories of supply and demand, a reduction in the volume of workforce supply should lead to wage increases.…”

“…According to the findings of the Institute of Macroeconomic Analysis and Development -IMAD (Kajzer and Fajič 2016), the consequences of such demographic trends will be visible primarily in the labour market, education, public expenditure, housing, spatial planning, and regional development. The decline in the number of people of working age will become a limiting factor for economic growth over the next 10 years (Fialho and Høj 2020). Even with the assumption of increased participation in the workforce by both younger and older individuals, the number of available workers will not be sufficient to meet the demands of the job market (Perko and Rogan 2023).…”

“…The same applies to migration in general and labour migration. Demographic changes in Slovenia are already reducing the available workforce and directly affecting economic development (Fialho and Høj 2020). Without intensive net migration, the employment rate is projected to turn negative in the coming years (Kajzer and Fajič 2016).…”

“…The OECD has issued warnings that the current lengthof-service bonus framework may hinder older workers' mobility and their motivation to learn, while at the same time compelling employers to pay wages higher than the actual productivity of older workers in comparison to younger workers. This situation can also contribute to a high ratio of the minimum wage to the median or average wage (Fialho and Høj 2020), although the high ratio of the minimum wage to the median wage or average wage in Slovenia is more a result of the compressed wage structure and the relatively low value added in the economy (Rogan 2020) vocational education, and just over twothirds were under 40 years of age, out of which more than half were under 30.…”

“…As a labour law institute, the minimum wage is directly impacted by changes in the labour market, with the rise in non-standard and new forms of employment, demographic trends (particularly population ageing), and migration being the most notable. These are phenomena with numerous micro and macro effects on both individuals and companies (OECD 2019;Fialho and Høj 2020;Agyei 2020) and, as such, warrant broader attention from the scientific community. This attention should extend to traditional labour law institutes, such as the minimum wage.…”