Page 8 - IDEA Studie 9 2015 Pracovni aktivita duchodcu

could increase pensioners' net working income, which would incentivize them to
work.
 In this study, institutional incentives for the elderly to work are quantified by
participation tax rate. All specifications of participation tax rate, which do not take into account unemployment benefits, show, that institutional incentives for the elderly to work are not higher compared to incentives for prime age individuals to work. Moreover, participation tax rates of pensioners used to be even higher compared to prime age individuals. This was the case in 2013 when working pensioners, who were receiving an old age pension, could not claim taxpayer tax credit. Therefore, pensioners' institutional incentives to work cannot offset their increased temptation to leave labour market.
 A higher level of employment among the elderly is beneficial for the elderly and for the whole population, because it raises public revenues through an increase in direct tax, social security and health care contributions and other tax revenues. An international comparison shows that it is possible to increase employment among old age pensioners by more than 20 percentage points. According to our simulation, a 10 percentage point increase in employment, driven by significant institutional incentives for the elderly to work, would raise public revenue by 0.3 % to 1.5 %.
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