Balancing Flexibility and Worker Protection : Understanding Labor Market Duality in Poland

This paper analyzes the legal and actual gaps in working conditions and returns between permanent and temporary contracts, with a focus on civil law contracts, which are at the center of the debate on widening labor market duality in Poland. We find that net employment creation in recent years occurred largely through involuntary temporary contracts, especially among the low-skilled and young people. Even accounting for workers heterogeneity, we find a persistent wage gap between permanent and temporary contracts, and limited mobility across contract typologies. Insights from qualitative evidence suggest that narrowing duality without hurting the most vulnerable workers will require a reduction in administrative burdens and implicit costs associated with permanent labor contracts, while eliminating firms’ incentives to strictly prefer temporary contracts.

Bibliographic Details

Main Author:	World Bank Group
Format:	Report biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2014-10
Subjects:	JOBS, EMPLOYMENT, RISKS, LABOR MARKET POLICY, UNEMPLOYMENT RATES, RIGHTS, ECONOMIC GROWTH, LABOUR OFFICE, ACCOUNTING, WAGE GAP, SKILLED WORKERS, RETIREMENT, WAGE DIFFERENTIAL, LABOR LAW, MINIMUM WAGE, INCOME, SERVICE SECTOR, LABOR TURNOVER, AGE GROUP, JOB TENURE, TOTAL LABOR FORCE, INFORMATION, LABOR FORCE, HEALTH INSURANCE, JOB, AGE CATEGORIES, INCENTIVES, LABOR ECONOMICS, WAGE LEVEL, LABOR FORCE PARTICIPATION, FREELANCE WORKERS, TEMPORARY WORKERS, CONTRACT LABOR, EMPLOYMENT TRENDS, EARLY RETIREMENT, PAID WORKERS, TEMPORARY WORK, EMPLOYMENT PERFORMANCE, LABOR MARKET, MATERNITY LEAVE, ECONOMIC SLOWDOWN, LABOR MARKET REFORM, LABOR MARKET FLEXIBILITY, LABOR COSTS, TRAINING, MATERNITY BENEFITS, WORKER, CONTRACTS, MANUFACTURING INDUSTRY, PRODUCTIVITY, UNEMPLOYED, OLDER WORKERS, TEMPORARY WORKER, MARKETS, HEALTH CONTRIBUTIONS, BUSINESS CYCLE, LABOR CONTRACTS, LABOR, PRIME AGE, TOTAL EMPLOYMENT, LABOUR MARKETS, JOB SEARCH, LABOR REGULATION, LONG-TERM UNEMPLOYMENT, JOBLESS GROWTH, REGULAR WORKERS, PERMANENT WORKERS, UNEMPLOYMENT, AVERAGE WAGES, LABOR COST, HUMAN CAPITAL, PRIVATE SERVICE, WORKERS, LABOR MARKET CONDITIONS, YOUNG WORKERS, WAGES, POLICIES, TOTAL UNEMPLOYMENT, UNEMPLOYMENT RATE, EMPLOYMENT PROTECTION LEGISLATION, YOUNG WORKER, LABOR DEMAND, HIGH EMPLOYMENT, LABOR MARKET SEGMENTATION, VALUE, AVERAGE WAGE, CONTRIBUTION RATE, LABOR CONTRACT, NET EMPLOYMENT, OCCUPATIONS, LABOUR MARKET, PERMANENT EMPLOYMENT, WORKFORCE SKILLS, LABOR MARKET OUTCOMES, JOB CREATION, EMPLOYMENT GROWTH, EARNING, EMPLOYMENT DYNAMIC, SICK LEAVE, MANAGEMENT, INSURANCE, PRODUCTIVITY LEVEL, ECONOMIC INTEGRATION, SEVERANCE PAY, TEMPORARY JOBS, SECURITY, DISMISSAL, WORKING CONDITIONS, SKILLED OCCUPATIONS, PERMANENT JOBS, EMPLOYMENT RELATIONSHIP, LABOR MARKET REGULATIONS, EMPLOYER-EMPLOYEE RELATIONSHIP, EMPLOYEE, YOUNGER WORKERS, LAW, HIGH UNEMPLOYMENT, EMPLOYMENT OUTLOOK, UNEMPLOYMENT BENEFITS, JOB SECURITY, PRIMARY EDUCATION, EMPLOYEE BENEFITS, WAGE EARNER, WAGE DISTRIBUTION, LABOUR, HEALTH CONTRIBUTION, SMALL MANUFACTURING, LABOR MARKETS, TEMPORARY EMPLOYMENT, STABLE JOB, OUTCOMES, STRUCTURAL UNEMPLOYMENT, WAGE EMPLOYMENT, LABOR REGULATIONS, EMPLOYEES,
Online Access:	http://documents.worldbank.org/curated/en/2015/10/24831690/balancing-flexibility-worker-protection-understanding-labor-market-duality-poland http://hdl.handle.net/10986/23024
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