Page 41 - IDEA Study 3 2015 Duchodova studie

is becoming a widespread phenomenon in the Czech Republic. The difference between the two countries in the incidence of retirement among women is notable. The difference in the retired share at the age of 60 years is almost 70 percentage points, and at the age of 65 is still about 40 percentage points. Note that personal and health conditions play a negligible role in the decision to enter retirement for any given age, and the only key determinant is the institutional environment. Using the same methodological approach, we produced simulations for Czech and Swedish men. The resulting profiles are shown in the right-hand panels in graphs 5.1 and 5.2. The patterns are very similar to those for women. The differences are similar, but are notably smaller. For employment probability and retirement decisions, we would observe almost no difference in behaviour between Czech and Swedish men if the former lived in the latter’s welfare state system. In the same way, we ran simulations for the Czech Republic and Austria. As graphs 5.3 and 5.4 show, the Austrian social and pension systems are much closer to the Czech Republic's systems, although employment probability for both genders is greater and retirement among men is lower in the Czech Republic. Adopting Austrian policies related to retirement would lead to a decrease in labour force participation among men and women and to a higher uptake of retirement among Czech men. GRAPH 5.3 Employment probabilities in the Czech Republic and Austria in 2013 Real CZ Simulated CZ Real AT 11 .75 .75 .5 .5 .25 .25 Real CZ Real AT Simulated CZ 00 50 55 60 65 70 50 55 60 65 70 Proportion WORKING by age: AT - WOMEN Proportion WORKING by age: AT - MEN Real CZ Simulated CZ Real AT 11 .75 .75 .5 .5 .25 .25 Real CZ Real AT Simulated CZ 00 50 55 60 65 70 50 55 60 65 70 Proportion RETIRED by age: AT - WOMEN Proportion RETIRED by age: AT - MEN 39 Share of people RETIRED Share of people WORKING Share of people RETIRED Share of people WORKING