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WORKSHOP AGIR HELSINKI JUNE 12-13, 2003

Federal Planning Bureau Economic Analysis & Forecasts. WORKSHOP AGIR HELSINKI JUNE 12-13, 2003 AGIR WP3: Determinants of retirement J. MESTDAGH – M. LAMBRECHT. Data requirement ETLA. Time use survey data (presentation)

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WORKSHOP AGIR HELSINKI JUNE 12-13, 2003

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  1. Federal Planning Bureau Economic Analysis & Forecasts WORKSHOP AGIR HELSINKI JUNE 12-13, 2003 AGIR WP3: Determinants of retirement J. MESTDAGH – M. LAMBRECHT

  2. Data requirement ETLA • Time use survey data (presentation) • APW wages & pension levels • Social security contributions (presentation) • Income taxes • Consumption taxes • Wages household personnel (presentation)

  3. Time use Survey • Time Use Survey NIS 1999 • 8382 individuals in 4275 households • By filling in diaries per 10 minutes • 271 categories of activities • By gender, age group, employment status, attained level of education, family situation and context

  4. Time use survey: drawbacks • Only averages available, not on individual level • Cross-sectional survey, not longitudinal

  5. Categories of activities 5 main categories of activities • Household work • Paid work • Leisure time • Basic needs • Travel time

  6. Time use of men Hours spent on activity per week by working (FT) and retired men 85 73 50 35 30 22 15 12 8

  7. Share in total time - men Working men Retired men

  8. Time use of women Hours spent on activity per week by working (FT) and retired women 89 76 44 24 27 31 27 11 6

  9. Share in total time - women Working women Retired women

  10. Conclusion Comparing time use of full time workers and retirees (both men and women) shows that retired people spend more time on - household work - leisure time - basic needs than active people do Attention: no longitudinal study!

  11. FT working men and women Hours per week spent on activity 73 76 35 31 30 27 24 15 12 11

  12. Retired men and women Hours per week spent on activity 85 89 50 44 22 27 8 6

  13. Conclusions Comparing time use of men and women (both active people and retirees) shows that women spend more time on - household work - basic needs than men do. But gap for household work is smaller when retired

  14. Theories of time use • Dual burden of work • Specialization of work • Continuity of life time patterns

  15. Dual burden of work • not likely, at all ages difference between gender in total burden (paid + household) of work small

  16. Specialization between gender Possible : leisure more or less equal, men more paid work, women more household work

  17. Continuity of life time patterns No: significant difference in time use between active and retired people (cross-sectional)

  18. Social security contributions • Employee contributions: - 13.07% for all employees • Employer contributions - 42.78 % for blue collar workers (includes annual vacation) - 26.80 % for white collar workers

  19. Social Security contributions 3 categories of household personnel • Less than 4 hrs a day or 24 hrs a week : no contributions due ( 96% of all personnel) • More than 24 hrs a week and considered blue-collar worker: contributions due • More than 24 hrs a week and considered white-collar worker: contributions due

  20. Wages household personnel • No reliable data on wages household personnel since most household personnel doesn’t have to pay SS contributions and are thus not included in statistics • Alternative : minimum wages (source : Ministry of Labour and Employment)

  21. Wages household personnel Only considering situation in which no SS contributions have to be paid (96% of cases) (in euro): 2000 2001 Wage cost employer 7.07 7.31 Gross wage 7.07 7.31 Income taxes 3.18 (45%) 2.92 (40%) Net wage 3.89 5.02

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