Publication: NDC Schemes and the Labor Market: Issues and Options
Date
2019-04
ISSN
Published
2019-04
Author(s)
Abstract
Defined contribution (DC) schemes
whether unfunded or funded are often considered superior to
defined benefit (DB) schemes in their ability to address
labor market issues, particularly in encouraging formal
employment and delayed retirement. Conceptually, the
assessment is based on superior incentives to work and save.
Yet economic and social realities are more complex. This
paper explores design and labor market conditions that
potentially constrain DC schemes. The paper concludes that
to achieve their conceptual potential, DC schemes require
design innovations, including a better integration of basic
provisions and complementary labor policies that promote job
creation in the formal sector and expand job opportunities
during old age.
Citation
“Holzmann, Robert; Robalino, David; Winkler, Hernan. 2019. NDC Schemes and the Labor Market; NDC Schemes and the Labor Market : Issues and Options. Social Protection and Jobs Discussion Paper,no. 1914;. © World Bank, Washington, DC. http://openknowledge.worldbank.org/handle/10986/31635 License: CC BY 3.0 IGO.”