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Shift to private pension system: The case of Poland and Israel

Author

Listed:
  • Manor Moshe

    (Financial and economic consultant and lecturer of business administration, 3 Haorev St. Rosh Haayin, 4855011Israel)

  • Ratajczak Joanna

    (Department for Labor and Social Policy, Poznań University of Economics and Business, al. Niepodległości 10, 61-875 Poznań, Poland)

Abstract

Following Chilean experiences as well as the World Bank suggestions post-communist Poland and post-collectivist Israel—underwent deep reforms which led to the privatization of old age security. The aim of the article is to compare the Polish and Israeli paths of pension privatization in the last thirty years. The main conclusions are: (1) the economic, demographic and political environments at the moment of the design and implementation of the pension reform were quite similar in both countries; however (2) the scope and scale of the privatization was different: in Poland there was only partial shift towards private pension system while in Israel full privatization of the system was implemented; (3) the decisive factors were: the inertia of the already existing pension systems and the power of foreign influencers; (4) the retreat from privatization in Poland and the increase in Israel took place due to the different mix of disadvantages of the new pension arrangements, short-term political aims and international pressure.

Suggested Citation

  • Manor Moshe & Ratajczak Joanna, 2020. "Shift to private pension system: The case of Poland and Israel," Economics and Business Review, Sciendo, vol. 6(1), pages 82-102, March.
    • Handle: RePEc:vrs:ecobur:v:6:y:2020:i:1:p:82-102:n:4
    DOI: 10.18559/ebr.2020.1.4
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    pension system; pension privatization; private pension system; Poland; Israel;
    All these keywords.

    JEL classification:

    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • K38 - Law and Economics - - Other Substantive Areas of Law - - - Human Rights Law; Gender Law; Animal Rights Law
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
    • N3 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy

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