Recent research suggests that policy governing the retirement age in a given country affects not only the employment level of...
GMAT Multi Source Reasoning : (MSR) Questions
Recent research suggests that policy governing the retirement age in a given country affects not only the employment level of those who have reached the retirement age, but also the employment level of workers who are close to the retirement age. The distance effect describes a situation observed in many countries where people who are closest to the retirement age are least likely to be employed.
In Nation X, retirement policies, including retirement age and pension levels, are set on a national level. Each province, however, determines its own policy on unemployment benefits for those who have not yet retired. Recently, the provinces collected various forms of data concerning employment.
Nation X subsequently introduced an incentive scheme to encourage workers to delay retirement beyond the previously mandatory retirement age of 60, in exchange for higher retirement compensation beginning at a later age. This incentive has had two positive effects: it increased the money available in the pension funds due to delayed retirement of currently employed workers and it increased the likelihood that those near the retirement age who are not employed will search for employment.
Which one of the following statements most accurately describes a relationship between the table and the introduction?
OWNING THE DATASET
Understanding Source A: Text Source - Research Summary on Nation X's Retirement Policies
| Information from Dataset | Analysis |
|---|---|
| ""Recent research suggests that policy governing the retirement age in a given country affects not only the employment level of those who have reached the retirement age, but also the employment level of workers who are close to the retirement age."" |
|
| ""The distance effect describes a situation observed in many countries where people who are closest to the retirement age are least likely to be employed."" |
|
| ""In Nation X, retirement policies, including retirement age and pension levels, are set on a national level. Each province, however, determines its own policy on unemployment benefits for those who have not yet retired."" |
|
| ""Recently, the provinces collected various forms of data concerning employment."" |
|
| ""Nation X subsequently introduced an incentive scheme to encourage workers to delay retirement beyond the previously mandatory retirement age of 60"" |
|
| ""This incentive has had two positive effects: it increased the money available in the pension funds due to delayed retirement of currently employed workers and it increased the likelihood that those near the retirement age who are not employed will search for employment."" |
|
Summary:
- Nation X implemented an incentive scheme allowing voluntary delayed retirement beyond the mandatory age of 60
- Addressed both the ""distance effect"" phenomenon and pension fund sustainability issues
Understanding Source B: Chart - Provincial Employment Data Before Incentive Scheme
Chart Analysis:
- The graph shows employment rates by age groups (30-49, 50-54, 55-59) across different province types
- Provinces are categorized by unemployment benefit levels (b) and separation rates (r) - both either high or low
- Separation rate means ""the ratio of the number of terminations (voluntary and involuntary) to the number of workers employed""
Key patterns observed:
- Employment rates decline with age across all province groupings, confirming the distance effect
- ""b low, r low"" provinces maintain highest employment: 88% (30-49) → 90% (50-54) → 91% (55-59)
- ""b high, r high"" provinces show steepest decline: 74% (30-49) → 64% (50-54) → 47% (55-59)
- Nationwide average: 85% (30-49) → 80% (50-54) → 58% (55-59)
Key findings:
- Provinces with both high unemployment benefits and high job turnover have the worst employment outcomes for older workers
- The 55-59 group employment is nearly half that of the 30-49 group in high-benefit, high-turnover provinces
- This data validates the ""distance effect"" concept, showing employment drops most dramatically for the 55-59 age group nationwide
- Provincial control over unemployment benefits explains why employment patterns vary so dramatically across province types
Understanding Source C: Table - Nationwide Employment Rates Before and After Incentive Scheme
Employment rate changes by age group:
- Ages 20-29 and 30-49: No change (83.1% and 84.8% respectively)
- Age 50-54: Modest improvement from 80.0% to 81.2% (1.2 percentage point increase)
- Age 55-59: Dramatic improvement from 57.9% to 71.4% (13.5 percentage point increase)
- Age 60-64: Employment went from 0.0% to 20.1%
Key insights:
- The incentive scheme had its strongest effect on those closest to retirement (55-59)
- Created entirely new employment opportunities for those past the previous mandatory retirement age
- Confirms the claim that the incentive increased ""the likelihood that those near the retirement age who are not employed will search for employment""
- The 0.0% employment for 60-64 before the scheme confirms the ""previously mandatory retirement age of 60""
- The nationwide 55-59 employment improvement suggests the incentive scheme was powerful enough to overcome even the worst provincial conditions
Question Analysis
Understanding the Question
- Core question: Which statement best describes how the table (employment rates before and after incentive scheme) relates to the introduction paragraphs?
- Focus areas: Source C (the table) and Source A (the introduction)
- Required: Identify the most accurate relationship between the table and introduction content
Connecting to Our Passage Analysis
- Compare each statement to the contents of the introduction paragraphs and table data
- Determine whether the table supports, contradicts, or corresponds to the introduction's claims
- All relevant information is available in our analysis to determine the correct statement
Statement Evaluations
Statement 1 Analysis
""The table suggests that a phenomenon discussed in the first paragraph of the introduction is not present in Nation X.""
- Claims the table shows a phenomenon from paragraph 1 is absent in Nation X
- This is false because the table shows the distance effect is present
- Employment rates decline near retirement age as shown in the table
- The table confirms, not denies, the distance effect
- INCORRECT - Statement 1 misrepresents the data
Statement 2 Analysis
""The table provides evidence that contradicts research discussed in the first paragraph of the introduction.""
- Claims contradiction of research in paragraph 1 - unsupported as data confirms rather than contradicts it
Statement 3 Analysis
""The table provides evidence of a positive effect discussed in the third paragraph of the introduction.""
- Says the table provides evidence of positive effects discussed in paragraph 3
- Matches the employment increases shown after the incentive scheme
- Employment rates for older age groups increased significantly post-incentive
- Paragraph 3 discusses positive incentive effects on employment
- The table data supports the positive employment effects
- CORRECT - Statement 3 matches the data and introduction
Statement 4 Analysis
""The table presents data discussed in the second paragraph of the introduction.""
- Links table to data discussed in paragraph 2 - incorrect as paragraph 2 discusses data collection methods but not the table's data
Statement 5 Analysis
""The table demonstrates that a phenomenon discussed in the introduction may be present in the nation as a whole but need not be present in all parts of that nation.""
- Suggests the table shows a phenomenon present nationally but not in all parts
- The table lacks regional data - provides only nationwide data with no provincial breakdown
- Regional variation claims need provincial data
- Table does not provide evidence for regional variation claims
- INCORRECT - Statement 5 makes an unsupported claim
Additional Statement Review
- Only Statement 3 accurately reflects the relationship between Source C's table and the introduction
Final Answer
""The table provides evidence of a positive effect discussed in the third paragraph of the introduction.""
The table suggests that a phenomenon discussed in the first paragraph of the introduction is not present in Nation X.
The table provides evidence that contradicts research discussed in the first paragraph of the introduction.
The table provides evidence of a positive effect discussed in the third paragraph of the introduction.
The table presents data discussed in the second paragraph of the introduction.
The table demonstrates that a phenomenon discussed in the introduction may be present in the nation as a whole but need not be present in all parts of that nation.