better with benefits, for example by including government/donors as contributors, or strengthening governance, transparency, and private sector voice in the use of funds.<sup>167</sup>

**Financial incentives to foster training have so far had limited impact on older workers’ employment in HICs.** In Germany, a firm-level subsidy program targeting workers ages 45 and above in SMEs was found to have improved job stability and employment by prolonging working life; programs with long duration had a stronger effect on both jobs and earnings.<sup>168</sup> For tax incentives, both substitution and deadweight losses appear to be significant, however. Direct subsidies, often structured as co-financing arrangements, may be more effective insofar as they facilitate the targeting of specific groups of firms and employees.<sup>169</sup>

**Low-cost information campaigns (within companies, and to companies) may go some way towards raising awareness and increasing firms’ own training initiatives or uptake of public skills programs, especially among SMEs** . In many OECD countries, governments run campaigns and provide employers with toolkits and guidance material on how to best address skills and health issues.<sup>170</sup>

**Complementary investments in organizational change or infrastructure can also have significant productivity payoffs.** Adapted technology, ergonomic office equipment, mixed-age teams, and other adjustments can help workers stay healthy and engaged. A much-cited example of the significant potential payoffs of such policies is the auto manufacturer BMW’s Dingolfing plant in Germany, where a small investment in ergonomics and work organization (workstation rotation) resulted in a 7 percent productivity increase, exceeded quality targets, and reduced absenteeism.<sup>171</sup>

# **Interventions focusing on workplace health should help increase worker retention and increase**

**mature workers’ productivity; however, there is little evidence as to what works to encourage these** . The United Kingdom targets SMEs with a specific national occupational health service to this effect.<sup>172</sup> Occupational health and safety programs have been shown to improve risk factors for injuries and chronic illnesses, many of which increase with age.<sup>173</sup> This can include both access to health care and support for healthy lifestyles – diet, exercise, and social interaction, which also affects labor market participation as well as productivity.<sup>174</sup> However, there is no conclusive evidence of positive impacts of such interventions on productivity or labor force participation, largely due to lack of quality studies.<sup>175</sup> Some positive examples on which to build do exist, however. In the United States, an occupational health intervention involving access to physicians was associated with a significant reduction in both sickness absence and early retirement .<sup>176</sup> Interventions could also be adapted to the informal sector context. A study of informal sector workers in Thailand showed that safe working practices improved older workers’ work ability, suggesting that targeted information/promotion programs could help increase their productivity.<sup>177</sup>

167 UNESCO 2022. 168 Singer and Toomet 2013. 169 Picchio 2021. 170 OECD 2019b. 171 EBRD 2020, Loch et al. 2010. 172 OECD 2019b. 173 Anger et al. 2015. 174 Prinz et al. 2018. 175 Poscia et al. 2016. 176 Crawford et al. 2009.

177 Thanapop and Thanapop 2021.

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