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Path Dependency Versus New Determinants of Retirement in the Czech Republic

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Delaying Retirement

Abstract

This chapter underlines the effects of historical path dependency, describes the current situation, and identifies some of the key factors of the institutional context of retirement on several levels, as well as workers’ preferences. Vidovicova argues that the perception of retirement as a “natural” right keeps the preferred retirement age low and hinders a more profound rise in the employment rate within the group of older workers. Repeated parametrical changes to the pension system, strongly felt age discrimination, and unemployment among the 50+ age group produce feelings of uncertainty and “push” older workers out of the labor market. Reasonable efforts have been made by the state to reverse these trends, change the determinants of retirement, and raise awareness of the aging of the Czech workforce.

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Notes

  1. 1.

    See http://www.mpsv.cz/files/clanky/23592/TZ_MPSV_hornicke_duchody.pdf (cit 2016-17-3).

  2. 2.

    Women gain one year for each child with a minimal statutory retirement age of 59 years.

  3. 3.

    See, for example, http://www.mpsv.cz/cs/2435 that includes an “age calculator” that helps to define the appropriate statutory retirement age; or http://www.finance.cz/duchody-a-davky/kalkulacky-a-aplikace/kalkulator-starobniho-duchodu/. Calculators are also available from commercial providers of financial and insurance consulting.

  4. 4.

    For example, Calculator: http://www.finance.cz/duchody-a-davky/kalkulacky-a-aplikace/pomer-mezi-cistou-mzdou-a-duchodem/.

  5. 5.

    See http://www.tyden.cz/rubriky/byznys/cesko/senat-schvalil-kurzarbeit-firmam-v-krizi-pomuze-stat_350003.html#.VbIX3bVRomw.

  6. 6.

    http://www.personalista.com/projekty-financovane-z-esf-tiskove-zpravy/vyuzijme-zkusenosti-v-plzenskem-kraji.html.

  7. 7.

    Although some research suggest that partners tend to time their retirement exit together, data available in the Czech Republic show that almost 70 % of those retired claim they would not change their decision on the basis of the retirement plans or behavior of their partners, and another 17 % say they did take this into account but it did not change their decision either. In other words, only around 15 % did coordinate their retirement timing with their partners, and the same (similar shares) holds for those still working when they talk about their plans. It should also be pointed out that not everybody among this 15 % planned to leave the labor market at the same time as their partners, because there were cases making use of the partner’s longer work engagement for own earlier exit, or vice versa (based on the same data as Vidovićová 2014; author’s own calculation).

  8. 8.

    Kotíková and Remr (2007) employed a different approach, but even in their study, when stating what was “definitely the reason for my early retirement,” 50 % of respondents reported “losing my job,” compared to “only” 38 % who reported being “generally tired, exhausted from working,” and 32 % who reported having “health problems.” However, because this item did permit multiple answers, the primary reasons for early exit may be over- or underestimated (cf. the interpretation by Šímová 2010).

  9. 9.

    Source: http://www.amsp.cz/modules/marwel/index.php?rewrite=17-3-2015-hospodarske-noviny-ubylo-5-tisic-podnikatelu-podle&str=2.

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Authors and Affiliations

  1. Office for Populational Studies, Faculty of Social Studies, Masaryk University, Brno, Czech Republic

    Lucie Vidovićová

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  1. Lucie Vidovićová
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  1. University of Duisburg-Essen, Essen, Germany

    Dirk Hofäcker

  2. Institute of Gerontology at the Technical University of Dortmund, Dortmund, Germany

    Moritz Hess

  3. Department of Psychology, University of Gothenburg, Gothenburg, Sweden

    Stefanie König

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Vidovićová, L. (2016). Path Dependency Versus New Determinants of Retirement in the Czech Republic. In: Hofäcker, D., Hess, M., König, S. (eds) Delaying Retirement. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-56697-3_4

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  • DOI: https://doi.org/10.1057/978-1-137-56697-3_4

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