NDC Schemes and the Labor Market : Issues and Options
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. Concep...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/346801556883743108/NDC-Schemes-and-the-Labor-Market-Issues-and-Options http://hdl.handle.net/10986/31635 |
| Summary: | 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. |
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