Labour market segmentation and pensions
in the Polish defined-contribution scheme

Piotr Lewandowski; Kamil Stroński; Roma Keister

2016 vol. 33

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Z WARSZTATÓW BADAWCZYCH

Labour market segmentation and pensions in the Polish defined-contribution scheme

Piotr Lewandowski ¹

Kamil Stroński ¹

Roma Keister ¹

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Institute for Structural Research

Publication date: 2020-05-26

Corresponding author

Piotr Lewandowski

Institute for Structural Research, Rejtana str. 15/28, 02 516 Warszawa; email: piotr.lewandowski@ibs.org.pl

Kamil Stroński

Institute for Structural Research, Rejtana str. 15/28, 02 516 Warszawa; email: kamil.stronski@ibs.org.pl

Roma Keister

Institute for Structural Research, Rejtana str. 15/28, 02 516 Warszawa; email: roma.keister@ibs.org.pl

Problemy Polityki Społecznej 2016;33:111–137

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References (9)

KEYWORDS

labour market segmentation

pensions

defined-contribution pension

scheme

ABSTRACT

The cohort model of the pension scheme is applied to analyse the impact of labour market segmentation on expected retirement benefits in Poland. The effects of policy instruments aimed at increasing the stream of contributions paid by workers with contracts of mandate are evaluated. It has been found that the expected retirement benefit in the segment of contracts of mandate is lower by 17% than in the segment of employment contracts. The obligation to pay contributions on all contracts of mandate from the minimum wage level will enable closing the pension gap by approx. 4.4 pp unless the obligation increases unemployment risk in the segment of contracts of mandate. Additional saving of 2% of the gross wage during spells of work on contract of mandate reduces the gap by less than 1 pp.

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