IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i19p8260-d424711.html
   My bibliography  Save this article

The Impact of the Flexibilization of Employment Histories on the Pension Adequacy in Poland

Author

Listed:
  • Alicja Jajko-Siwek

    (Department of Econometrics, Institute of Informatics and Quantitative Economics, Poznań University of Economics and Business, 61-875 Poznań, Poland)

Abstract

Flexibilization of employment history is a sign of our time. One of the real consequences of this phenomenon is the risk of a decrease in the level of future pension benefits, which can lead to the deprivation of pension system sustainability. Subsidies from the state budget will be necessary to the inadequate pensions. The paper aims to present how changes in earnings and employment breaks, caused by flexibilization of employment history, will impact the adequacy of pension benefits in Poland. In the research, different scenarios of employment history have been considered. As the method of research, we have used one of the data mining tools—the classification tree method with CART (Classification and Regression Trees) algorithm. The obtained results have shown a crucial role of stable individual promotion of earnings. Significant also is the level of earnings. The lower earnings can be compensated by long periods of seniority or by higher retirement age. Any breaks in work will lead to a reduction in the level of pension benefits and difficulties in maintaining adequacy. The suggestion from the study is that even if you are unemployed or receive a low salary, you should leave at least a low contribution to the pension system.

Suggested Citation

  • Alicja Jajko-Siwek, 2020. "The Impact of the Flexibilization of Employment Histories on the Pension Adequacy in Poland," Sustainability, MDPI, vol. 12(19), pages 1-16, October.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:19:p:8260-:d:424711
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/19/8260/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/19/8260/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Marta Lachowska & Michał Myck, 2018. "The Effect of Public Pension Wealth on Saving and Expenditure," American Economic Journal: Economic Policy, American Economic Association, vol. 10(3), pages 284-308, August.
    2. World Bank, 2008. "The World Bank Pension Conceptual Framework," World Bank Publications - Reports 11139, The World Bank Group.
    3. Anna Jędrzychowska & Ilona Kwiecień & Ewa Poprawska, 2020. "The Motherhood Pension Gap in a Defined Contribution Pension Scheme—the Case of Poland," Sustainability, MDPI, vol. 12(11), pages 1-18, May.
    4. Chlon, Agnieszka & Gora, Marek & Rutkowski, Michal, 1999. "Shaping pension reform in Poland : security through diversity," Social Protection Discussion Papers and Notes 20852, The World Bank.
    5. Robert Holzmann & Richard Hinz, 2005. "Old Age Income Support in the 21st century: An International Perspective on Pension Systems and Reform," World Bank Publications - Books, The World Bank Group, number 7336, December.
    6. Filip Chybalski & Edyta Marcinkiewicz, 2016. "The Replacement Rate: An Imperfect Indicator of Pension Adequacy in Cross-Country Analyses," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 126(1), pages 99-117, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Said Outlioua & Abdesselam Fazouane, 2023. "Which factors affect the sustainability of pension schemes?," Economic Affairs, Wiley Blackwell, vol. 43(1), pages 89-108, February.
    2. Barbara Maria Błaszczyk, 2023. "Systemy dodatkowego oszczędzania na starość. Przesłanki, cele i znaczenie ekonomiczne," Ekonomista, Polskie Towarzystwo Ekonomiczne, issue 2, pages 217-244.
    3. Antón Pérez, José Ignacio, 2006. "The Reform of the Pension Systems in Easterm Europe and these Impact about the Efficiency and Equity/La reforma de los sistemas de pensiones en Europa del Este y su impacto sobre la eficiencia y la eq," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 24, pages 643(20á)-64, Agosto.
    4. JIMON Stefania Amalia & BALTES Nicolae & MUNTEAN Neli, 2019. "Social Protection Of Older People And The Structure Of Consumption Expenditure In Countries Of Central And Eastern Europe," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 71(2), pages 103-117, September.
    5. Juan-José Alonso-Fernandez & Robert Meneu-Gaya & Enrique Devesa-Carpio & Mar Devesa-Carpio & Inmaculada Dominguez-Fabian & Borja Encinas-Goenechea, 2018. "From the Replacement Rate to the Synthetic Indicator: A Global and Gender Measure of Pension Adequacy in the European Union," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(1), pages 165-186, July.
    6. Georgios Symeonidis & Platon Tinios & Panos Xenos, 2020. "Enhancing Pension Adequacy While Reducing the Fiscal Budget and Creating Essential Capital for Domestic Investments and Growth: Analysing the Risks and Outcomes in the Case of Greece," Risks, MDPI, vol. 9(1), pages 1-17, December.
    7. Qing Zhao & Haijie Mi, 2019. "Evaluation on the Sustainability of Urban Public Pension System in China," Sustainability, MDPI, vol. 11(5), pages 1-20, March.
    8. Tatiana Damjanovic & Vladislav Damjanovic & Charles Nolan, 2015. "Ordering Policy Rules with an Unconditional Welfare Measure," International Journal of Central Banking, International Journal of Central Banking, vol. 11(1), pages 103-149, January.
    9. David Robalino, 2005. "Pensions in the Middle East and North Africa: Time for Change," World Bank Publications - Books, The World Bank Group, number 7427, December.
    10. Johannes Hagen, 2018. "The effects of increasing the normal retirement age on health care utilization and mortality," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(1), pages 193-234, January.
    11. John B. Williamson, 2001. "Future Prospects for Notional Defined Contribution Schemes," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 2(4), pages 19-24, October.
    12. Calvo, Esteban & Williamson, John B., 2006. "Old-Age Pension Reform and Modernization Pathways: Lessons for China from Latin America," MPRA Paper 4872, University Library of Munich, Germany, revised 2007.
    13. Börsch-Supan, Axel, 2004. "From Traditional DB to Notional DC Systems," MEA discussion paper series 04063, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
    14. Etgeton, Stefan & Fischer, Björn & Ye, Han, 2023. "The effect of increasing retirement age on households’ savings and consumption expenditure," Journal of Public Economics, Elsevier, vol. 221(C).
    15. Arnab Bhattacharjee & Larissa Marioni & Max Mosley & Adrian Pabst, 2024. "Exploring Alternative Data Sources for Household Wealth Statistics," National Institute of Economic and Social Research (NIESR) Discussion Papers 552, National Institute of Economic and Social Research.
    16. Michał Myck & Mateusz Najsztub, 2020. "Implications of the Polish 1999 administrative reform for regional socio‐economic development," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 28(4), pages 559-579, October.
    17. Christophe Daniel & Anne Lavigne & Stéphane Mottet & Jesus-Herell Nze Obame & Bruno Séjourné & Christian Tagne, 2016. "L’équivalent patrimonial des droits à la retraite en France : une approche par caisse de retraite sur données de l’EIR 2012," Working Papers halshs-01293314, HAL.
    18. Erika Pastoráková & Zuzana Brokešová & Jana Péliová, 2017. "Proaktívny prístup k tvorbe súkromných dôchodkových úspor: kľúčové determinanty [Proactive Approach to Private Pension Savings: Key Determinants]," Politická ekonomie, Prague University of Economics and Business, vol. 2017(6), pages 709-727.
    19. World Bank, 2012. "Resilience, Equity, and Opportunity [Capacidad de recuperación, equidad y oportunidades]," World Bank Publications - Reports 12648, The World Bank Group.
    20. Stefan Domonkos & Andras Simonovits, 2016. "Pensions in transition in EU11 countries between 1990 and 2015," CERS-IE WORKING PAPERS 1615, Institute of Economics, Centre for Economic and Regional Studies.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:19:p:8260-:d:424711. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.