The Latvian NDC Scheme : Success Under a Decreasing Labor Force

The Latvian NDC Scheme : Success Under a Decreasing Labor Force

Latvia introduced a nonfinancial defined contribution (NDC) scheme in 1996 as it transitioned to a market economy. Despite a 20 percent decline in the working-age population from 1994–2016, the ratio of contributors to old-age pensioners rose from...

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Bibliographic Details
Main Authors: Palmer, Edward, Stabina, Sandra
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2019
Subjects:
PENSIONS
PENSION REFORM
LABOR FORCE
NONFINANCIAL DEFINED CONTRIBUTIONS
Online Access:http://documents.worldbank.org/curated/en/422531556878533144/The-Latvian-NDC-Scheme-Success-Under-a-Decreasing-Labor-Force
http://hdl.handle.net/10986/31648
id okr-10986-31648
recordtype oai_dc
spelling okr-10986-316482021-05-25T09:23:25Z The Latvian NDC Scheme : Success Under a Decreasing Labor Force Palmer, Edward Stabina, Sandra PENSIONS PENSION REFORM LABOR FORCE NONFINANCIAL DEFINED CONTRIBUTIONS Latvia introduced a nonfinancial defined contribution (NDC) scheme in 1996 as it transitioned to a market economy. Despite a 20 percent decline in the working-age population from 1994–2016, the ratio of contributors to old-age pensioners rose from 1.6 to 2.1 given a steady increase in formal labor force participation and 5-6 percent real per capita wage growth. Projections show that long-term financial balance will be maintained through 2070, despite the threat of a projected 50 percent decline in the working-age population. Budgeted reserves will cushion the continued transition into a two-pillar public pension scheme. Latvia’s most important long-term policy challenge is to create the domestic investments and economic growth to reward younger workers for remaining in the country. 2019-05-07T17:19:33Z 2019-05-07T17:19:33Z 2019-04 Working Paper http://documents.worldbank.org/curated/en/422531556878533144/The-Latvian-NDC-Scheme-Success-Under-a-Decreasing-Labor-Force http://hdl.handle.net/10986/31648 English Social Protection and Jobs Discussion Paper,no. 1902; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Working Paper Europe and Central Asia Latvia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic PENSIONS
PENSION REFORM
LABOR FORCE
NONFINANCIAL DEFINED CONTRIBUTIONS
spellingShingle PENSIONS
PENSION REFORM
LABOR FORCE
NONFINANCIAL DEFINED CONTRIBUTIONS
Palmer, Edward
Stabina, Sandra
The Latvian NDC Scheme : Success Under a Decreasing Labor Force
geographic_facet Europe and Central Asia
Latvia
relation Social Protection and Jobs Discussion Paper,no. 1902;
description Latvia introduced a nonfinancial defined contribution (NDC) scheme in 1996 as it transitioned to a market economy. Despite a 20 percent decline in the working-age population from 1994–2016, the ratio of contributors to old-age pensioners rose from 1.6 to 2.1 given a steady increase in formal labor force participation and 5-6 percent real per capita wage growth. Projections show that long-term financial balance will be maintained through 2070, despite the threat of a projected 50 percent decline in the working-age population. Budgeted reserves will cushion the continued transition into a two-pillar public pension scheme. Latvia’s most important long-term policy challenge is to create the domestic investments and economic growth to reward younger workers for remaining in the country.
format Working Paper
author Palmer, Edward
Stabina, Sandra
author_facet Palmer, Edward
Stabina, Sandra
author_sort Palmer, Edward
title The Latvian NDC Scheme : Success Under a Decreasing Labor Force
title_short The Latvian NDC Scheme : Success Under a Decreasing Labor Force
title_full The Latvian NDC Scheme : Success Under a Decreasing Labor Force
title_fullStr The Latvian NDC Scheme : Success Under a Decreasing Labor Force
title_full_unstemmed The Latvian NDC Scheme : Success Under a Decreasing Labor Force
title_sort latvian ndc scheme : success under a decreasing labor force
publisher World Bank, Washington, DC
publishDate 2019
url http://documents.worldbank.org/curated/en/422531556878533144/The-Latvian-NDC-Scheme-Success-Under-a-Decreasing-Labor-Force
http://hdl.handle.net/10986/31648
_version_ 1764474792392523776

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