Page 40 - IDEA Study 3 2015 Duchodova studie

GRAPH 5.1 Employment probabilities in the Czech Republic and Sweden in 2013 Real CZ Simulated CZ Real SE 11 .75 .75 .5 .5 .25 .25 Real CZ Real SE Simulated CZ 00 50 55 60 65 70 50 55 60 65 70 Proportion WORKING by age: SE - WOMEN Proportion WORKING by age: SE - MEN Real CZ Simulated CZ Real CZ Simulated CZ Real SE Real SE Wese1ethatyoungerwomeninbothcountriesex1hibitahighemploymentrateatclose to 90%, and a negligible employment rate after 70 years of age. In the age range 60- 65 we observe a substantially higher employment rate in Sweden. In particular, the employment rate among Swedish women aged 65 years old is almost 50 percentage points higher than the equivalent rate among Czech women. The simulated profile for .75 .75 .5 .5 Czech women in a Swedish-type context is about 10 percentage points below the true Swedish one, which indicates that personal and health characteristics contribute only .25 .25 0 y Real CZ Simulated CZ 0 Real CZ Simulated CZ to the r eal lowe ment ra e among Czech w o g for the ir age. In other words, if Czech women were exposed to Swedish institutions, legis.l7a5 tion, and incentives, their employment w.75ould be around 40% higher, and this means that institutions, legislation and incentives explain roughly four fifths of the partiall Real SE r employ t Real SE omen, c ntrollin 5 0 55 60 65 7 11 0 65 70 .5 .5 actual difference between these two countries. .25 .25 GRAPH 5.2 00 Retire 11 .75 .75 .5 .5 .25 .25 ent p Real CZ Simulated CZ RealSE 0 50 55 6 Proportion RETIRED by age: SE - WOMEN Proportion RETIRED by age: SE - MEN m r i c lic and Swede 13 5 5 obabil ties in t 0 Proportion WORKING by age: SE - WOMEN 70 5 6 0 6 5 7 he Cze h Repu b n in 20 0 5 0 55 Proportion WORKING by age: SE - MEN Real CZ RealSE Simulated CZ 60 65 00 50 55 60 65 70 50 55 60 65 70 Proportion RETIRED by age: SE - WOMEN Proportion RETIRED by age: SE - MEN Graph 5.2 presents results of the same approach to simulate statutory retirement status Ri as a dependent variable in equation (1) instead of Ei (i.e. Ri=1 if person i is retired and Ri=0 otherwise). Note that Ri captures the decision to enter retirement irrespective of any possible work carried out during the subsequent retirement years. We simulate this alternative model too, since employment after statutory retirement 38 Share of people RETIRED Share of people WORKING Share of people RETIRED Share of people WORKING Share of people RETIRED Share of people WORKING Share of people RETIRED Share of people WORKING