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Supporting Voluntary Prolonged Labour Market Participation Through Fiscally Sustainable Schemes

Author

Listed:
  • Jan Mertl
  • Lenka Farkačová

Abstract

The article deals with the issue of fiscal support of participation of the senior population in the labour market. The main reasons for addressing this issue are not only the ageing population and the shortage of people on the labour market in Czechia but also the need to improve the fiscal revenues and fiscal sustainability in general. The article aims to define rules for setting employees’ tax burden that would motivate older workers to remain on the labour market after reaching the statutory retirement age and to demonstrate the impact of these measures on the fiscal yield. The article contains model calculations relating to specific proposals for addressing this situation. We show why and how those fiscal measures work, first at a theoretical level of individual variables, and then we assess the impact on public finance if these measures are introduced.

Suggested Citation

  • Jan Mertl & Lenka Farkačová, 2024. "Supporting Voluntary Prolonged Labour Market Participation Through Fiscally Sustainable Schemes," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 69(240), pages 57-87, January –.
    • Handle: RePEc:beo:journl:v:69:y:2024:i:240:p:57-87
    as

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    References listed on IDEAS

    as
    1. Andreas Kuhn, 2018. "The complex effects of retirement on health," IZA World of Labor, Institute of Labor Economics (IZA), pages 430-430, March.
    2. Romain Duval, 2003. "The Retirement Effects of Old-Age Pension and Early Retirement Schemes in OECD Countries," OECD Economics Department Working Papers 370, OECD Publishing.
    3. John S. Heywood & Uwe Jirjahn, 2016. "The hiring and employment of older workers in Germany: a comparative perspective [Die Beschäftigung und Neueinstellung älterer Arbeitnehmer in Deutschland: Eine vergleichende Perspektive]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 49(4), pages 349-366, December.
    4. Mosca, Irene & Barrett, Alan, 2014. "The Impact of Voluntary and Involuntary Retirement on Mental Health: Evidence from Older Irish Adults," IZA Discussion Papers 8723, Institute of Labor Economics (IZA).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Employment of the elderly; workplace; social policy; retirement; fiscal policy; fiscal revenue;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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