The Role of the Labor Market in Ensuring the Sustainability of the Pension System

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dc.contributor.authorHedvicakova, Martina
dc.contributor.authorKarlova, Tereza
dc.contributor.otherEkonomická fakultacs
dc.date.accessioned2025-10-02T10:24:23Z
dc.date.available2025-10-02T10:24:23Z
dc.description.abstractThe sustainability of the pension system is a key fiscal and social challenge that is exacerbated in the Czech Republic and other developed countries by demographic trends such as population aging, declining birth rates, and increasing life expectancy. These factors are putting increasing pressure on public finances and calling into question the stability of pay-as-you-go financing. The aim of this article is to comprehensively analyze the role of the labor market in ensuring the sustainability of the pension system and to identify key variables and their interrelationships. The analysis uses system dynamics methodology and a causal loop diagram (CLD) created in Stella Professional software. This diagram visualizes the complex system dynamics and feedback loops between key variables such as the number of workers, retirement age, system revenues and expenditures, and the influence of external factors. The results show that the sustainability of the system depends on a fragile balance that can be influenced by political interventions aimed at adapting the labor market. These include measures to support the employment of older workers and incentives to stay in employment longer. It is also crucial for long-term stability to take into account new trends such as flexible forms of employment, migration, and the impact of automation. Furthermore, it is necessary to emphasize the social acceptability of reforms and their accompanying measures in order to ensure not only financial stability but also intergenerational fairness and political acceptance.en
dc.formattext
dc.identifier.doi10.15240/tul/009/lef-2025-04
dc.identifier.isbn978-80-7494-747-6
dc.identifier.urihttps://dspace.tul.cz/handle/15240/178026
dc.language.isoen
dc.publisherTechnická Univerzita v Libercics
dc.publisherTechnical university of Liberec, Czech Republicen
dc.publisher.abbreviationTUL
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dc.relation.ispartofLiberecké ekonomické fórum 2025cs
dc.relation.ispartofLiberec Economic Forum 2025en
dc.subjectCausal Loop Diagramen
dc.subjectStellaen
dc.subjectExpendituresen
dc.subjectLabor Marketen
dc.subjectPension Systemen
dc.subject.classificationH55
dc.subject.classificationJ26
dc.subject.classificationJ14
dc.subject.classificationC63
dc.titleThe Role of the Labor Market in Ensuring the Sustainability of the Pension Systemen
dc.typeproceeding paperen
local.accessopen
local.citation.epage60
local.citation.spage53
local.facultyFaculty of Economics
local.fulltextyes
local.relation.abbreviationLEFcs
local.relation.abbreviationLEFen
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