The Retirement Behaviour of Older Workers in Transitional Economies

Research has shown that public pay-as-you-go, defined-benefit pension plans penalise those who stay at work beyond a certain age by reducing the present discounted value of future retirement benefits. In discussions on the effectiveness of policies aimed at eliminating the age-dependency factor in workers' decisions to retire, it is often assumed either that the benefits in all future periods have the same weight in the present discounted value or that the discount rate is close to unity due to low real interest rates used in this case. Galuscak first considered the U.S. pension scheme, showing that discounting plays a crucial role since the formula for the present discounted value of future retirement benefits is sensitive to the discount rate used. He then analysed the role of social security incentives and retirement provisions on older workers' behaviour in the labour markets of the Czech and Slovak Republics and the effect of the macroeconomic environment on workers' decisions to retire. He calculated the optimal parameters of the Czech and Slovak pension rules and assessed the potential effectiveness of changes to the Czech scheme introduced in January 1996.

Changing Values in a Transitional Period

This project examined the change in values in the still unfinished transitional period in Serbia during the 1990s and compared it with Greece in the same period. During this period the social and political transition affected the ruling value system primarily through changes in the modes of the production and representation of reality. The most remarkable trait of this period in Serbia is the parallel and interweaving existence of different value systems. The very perception of reality has been blurred by the emergence of a very complex technical and ideological structure. Reality is presented by and through extensions and additions, the models of which are language and media. With the development of media technology and global communication and information systems, representation has become the only available reality. This enables the media to overtly and unlimitedly intervene in reality, to manage and change it without constraint and thus have a direct impact on values. The difference between public and private is abolished, so the media start promoting exclusive collective values. However, since the collective thus loses its counterpart, it itself needs to be redefined. This confusion of values make the possible results of their change uncertain. It will either open up a space for multiculturalism and social pluralism and thus completely replace the old systems of values, or result in an indefinite survival of different, often contradictory, value systems and conceptions of reality, which often lead to all forms of exclusivity and intolerance.