The labour supply of older workers in Hungary Scharle Ágota Ministry of Finance, Hungary Department of Economic Policy

Activity rates drop after age 45

This is very low compared to EU, even CEE levels

An experiment: increase activity rates for men aged and 55-64

And it is threatening the balance of the Pension Fund

Activity would need to increase by 12 % points to balance PF

Reasons behind low activity rates in old age Low qualifications High unemployment Pension receipt Attitudes

Disability pension receipt has hardly declined since transition schock

Possible solutions Increase statutory retirement age (62->65) Tighten eligibility for disability pension Premium for later retirement Integrate taxes and social support Subsidies for low wage employment and old age workers Minimum wage legislation