Page 8 - IDEA Studie 9 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 %.

6