Page 38 - IDEA Study 3 2015 Duchodova studie

Our comparative simulations show that Austria's situation is similar to that of the Czech Republic (including many other similarities such as its schooling system, educational attainment levels, unemployment rate, etc.). The Netherlands seems to occupy an intermediate position between the Nordic and the Western European countries. In the Czech Republic, unemployment has a statistically and economically significant impact on employment (negative) and retirement (positive) among older women but not among older men. The impact is stronger at younger ages (close to 50) and diminishes with increasing age. Nevertheless, the impact on unemployment is relatively small and does not seem to be a strong factor in explaining the gap between Sweden and the Czech Republic. Retirement and employment decisions in Sweden do not exhibit any association with the incidence of unemployment. Comparing retirement and employment in the Czech Republic in 2007 and 2013 we find that the single most important determinant is the shift in the statutory retirement age, rather than any changes in the personal characteristics of the Czech population. Simulating the impact of hypothetically higher educational attainment among the older population (as expected in the coming decades), we find that this has only a small direct impact on the employment rate and retirement. This is in line with our findings on the Czech-Swedish educational attainment gap's relatively small contribution to both the employment rate and the incidence of retirement. Technical description of simulations For our simulation exercise we have chosen Sweden as a country representing the Northern regions of Europe, with a developed and effective system of old-age policies, as demonstrated in the first two parts of this study. The Swedish pension system possesses the key features of the Scandinavian welfare state, which is considered by many countries to be a pattern to follow. Swedish Benchmark The Swedish pension system reflects the type of Scandinavian welfare state which is considered by many countries to be a pattern to follow. The Swedish government's aim is to ensure pensions are sufficient for future generations. The national retirement pension system consists of three tiers; the first tier has three components: an income-based pension, a premium pension and a guaranteed pension. The income-based pension is financed on a pay-as-you-go basis and is independent of the 36