Skill Obsolescence and Lifelong Learning in the Ageing Workforce: The Effect on Job Satisfaction

Valentina Ferri, National Institute of Public Policies
Corrado Polli, National
Rita Porcelli, National Institute of Public Policies
Eleonora Trappolini, Sapienza University of Rome

Italy has experienced rapid population ageing over the past five decades, leading to an ageing workforce. This demographic change, coupled with efforts to extend working life, presents challenges as older workers face declining productivity due to technological advancements and organizational changes, which can lead to skill obsolescence and job insecurity. Promoting lifelong learning is crucial for enhancing human capital and addressing these challenges. Job satisfaction plays a key role in an ageing workforce, affecting decisions such as early retirement, yet few studies have explored its determinants, particularly the impact of skill obsolescence and lifelong learning. This study uses data from the 2021 and 2022 Italian Labour Force Survey (IT-LFS) and applies OLS models to examine the role of lifelong learning on job satisfaction among workers aged 50-74 in Italy. Preliminary results indicate that participation in formal training is positively associated with job satisfaction. Future analyses will include the "Skills Rate index," measuring hard, soft, and digital skills required by various occupations, derived from online job advertisements, along with additional IT-LFS waves. We will also apply a difference-in-difference model to assess the impact of training on job satisfaction, stratified by gender and occupation to account for potential differences.

Keywords: Population Ageing, Human Capital, Education, and Work

See extended abstract.