Page 47 - IDEA Study 3 2015 Duchodova studie

CHAPTER 6: CONCLUSIONS This study provides the first very detailed quantitative insight into the phenomena of retirement and old-age-related departures from the labour market in the Czech Republic. Of course, it should be kept in mind that our quantitative analysis has its own natural empirical limits imposed by the amount of information provided by the SHARE survey. While the data enable us to control for many important and typical individual and environmental factors, we are unable to test numerous other factors that may play a role too. Similarly, neither the overall unemployment rate nor the age specific unemployment rate necessarily capture enough job opportunities available to older people. A more rigorous analysis of this topic would require additional data and a more demanding methodological approach. Furthermore, our simulations do not identify where the different retirement and employment behaviours among Czechs come from, other than the extent to which they are accounted for by observable personal characteristics. Finally, it should be recognised that our analysis is primarily descriptive and comparative and does not aspire to identify the causal effects of human actions or government policies. Our analysis reveals that despite the legacy of the Czech Republic's historical development, there is a tendency to convergence with Western countries in terms of the socio-economic conditions and health of the older generations. As a result, institutions and incentives induced by the tax, welfare, employment, and pension policies are the major drivers of early retirement and departure from the labour market at older ages. We did not identify any major risks from further raising the statutory retirement age above its current level. The results show the importance of data collection in internationally comparable surveys, like SHARE and SILC. With high quality data, empirical research into ageing is possible, and can provide a factual basis for the formulation of government policies. Formulating optimal government policies based on factual evidence brings greater efficiency and social benefits that are essential for the sustainability of the welfare state in the Czech Republic. 45