Ageing and Employment Policies POLAND WORKING BETTER WITH AGE Ageing and Employment Policies People today are living longer than ever before, while birth rates are dropping in the POLAND majority of OECD countries. Given this context, social-welfare spending needs to be adapted in order to become sustainable in the long term. Older workers play a crucial role in the labour market. Now that legal retirement ages are rising, older workers will WORKING BETTER WITH AGE work longer and employers will have to provide them with work opportunities. But older workers who lose their job may well experience long-term unemployment as it is less likely for them to fi nd a new job. What can countries do to help? How can they give older people better work incentives and opportunities? How can they promote age A g diversity in fi rms? This series of reports analyses and assesses the best policies for e in fostering employability, job mobility and labour demand at an older age. g a dd n Contents d E Chapter 1. The “Live Longer, Work Longer” challenge for Poland m p Chapter 2. The labour market situation of older workers in Poland lo y Chapter 3. Making work rewarding for older workers in Poland m e nn Chapter 4. Encouraging employers in Poland to hire and retain older workers n t Chapter 5. Strengthening the employability of older workers in Poland P o Also available in this series licie s France (in English & French) P aa Netherlands (in English) O L Norway (in English) A N Switzerland (in French & German) D W For further information: www.oecd.org/els/employment/olderworkers O R ll K IN G B oo E T T E R W IT Consult this publication on line at http://dx.doi.org/10.1787/9789264227279-en. H A G This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and E PP statistical databases. Visit www.oecd-ilibrary.org for more information. ISBN 978-92-64-22726-2 81 2015 01 1 P Ageing and Employment Policies: Poland 2015 ThisworkispublishedundertheresponsibilityoftheSecretary-Generalofthe OECD.Theopinionsexpressedandargumentsemployedhereindonotnecessarily reflecttheofficialviewsofOECDmembercountries. Thisdocumentandanymapincludedhereinarewithoutprejudicetothestatusof orsovereigntyoveranyterritory,tothedelimitationofinternationalfrontiersand boundariesandtothenameofanyterritory,cityorarea. Pleasecitethispublicationas: OECD(2015),AgeingandEmploymentPolicies:Poland2015,OECDPublishing. http://dx.doi.org/10.1787/9789264227279-en ISBN978-92-64-22726-2(print) ISBN978-92-64-22727-9(PDF) Series:AgeingandEmploymentPolicies ISSN1990-102X(print) ISSN1990-1011(online) The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities.TheuseofsuchdatabytheOECDiswithoutprejudicetothestatusofthe Golan Heights, East Jerusalem and Israeli settlements in theWest Bank under the terms of internationallaw. CorrigendatoOECDpublicationsmaybefoundonlineat:www.oecd.org/about/publishing/corrigenda.htm. ©OECD2015 Youcancopy,downloadorprintOECDcontentforyourownuse,andyoucanincludeexcerptsfromOECD publications,databasesandmultimediaproductsinyourowndocuments,presentations,blogs,websitesand teachingmaterials,providedthatsuitableacknowledgmentofthesourceandcopyrightownerisgiven.All requestsforpublicorcommercialuseandtranslationrightsshouldbesubmittedtorights@oecd.org.Requests forpermissiontophotocopyportionsofthismaterialforpublicorcommercialuseshallbeaddresseddirectly totheCopyrightClearanceCenter(CCC)[email protected]çaisd’exploitationdudroitde copie(CFC)[email protected]. 3 FOREWORD – Foreword In the context of rapid population ageing, providing older people with better work incentives and choices is tremendously important, both in order to promote economic growth and to help sustain public social expenditures. Therefore, in 2011 the OECD Employment, Labour and Social Affairs Committee decided to carry out a fresh series of policy reviews to encourage greater labour market participation at an older age, through the fostering of employability, job mobility and labour demand. It builds upon previous work that the OECD has conducted in this area in the Ageing and Employment Policies series, summarised in the Organisation’s major cross-country report, Live Longer, Work Longer, published in 2006. Drawing on the findings of a comparative policy review of recent reforms, an empirical study of labour market factors, and in-depth country case studies, a synthesis report entitled Working Better with Age will be prepared in 2015 to highlight key issues and policy recommendations. This report on Poland is one of the OECD country case studies comprising that review. Following on from reports on France, the Netherlands, Norway and Switzerland, the book points to areas where changes or new reforms are needed to improve work incentives and employment opportunities at an older age. The report was prepared by Hilde Olsen and Thomas Manfredi under the supervision of Anne Sonnet (Project Leader) and Mark Keese (Head of Division). Technical assistance was provided by Monica Meza-Essid. Peter Jarrett and Hervé Boulhol have provided useful comments. A draft of the report was discussed at a seminar held in Warsaw on 10 October 2014. The seminar, organised by the Polish Ministry of Labour and Social Policy, brought together representatives of the public authorities, social partners and academic experts. *** The publication has been prepared as part of the project Equalising Opportunities on the Labour Market for People aged 50+carried out by the Human Resources Development Center, co-financed by the European Social Fund and initiated by the Department of Economic Analyses and Forecasts at the Ministry of Labour and Social Policy. Opinions and conclusions presented in the publication do not reflect the position of the Polish Ministry of Labour and Social Policy, but only the position of the authors. AGEING AND EMPLOYMENT POLICIES: POLAND 2015 © OECD 2015 5 TABLE OF CONTENTS – Table of contents Acronyms and abbreviations .......................................................................................... 9 Executive summary ........................................................................................................ 11 Assessment and key recommendations ........................................................................ 13 Chapter 1. The “Live Longer, Work Longer” challenge for Poland ......................... 31 The magnitude of the demographic challenge ............................................................. 32 Recent reforms in ageing and employment policies ........................................................ 33 Notes ............................................................................................................................ 35 References .................................................................................................................... 35 Chapter 2. The labour market situation of older workers in Poland ......................... 37 The Polish labour market in an international context ................................................... 38 Increased employment for those over 55 ..................................................................... 39 The roles of gender, age and education ........................................................................ 44 The labour market mobility of older workers .............................................................. 45 Outflow from the labour market begins early .............................................................. 49 Chapter 3. Making work rewarding for older workers in Poland ............................. 51 Trends in the effective age of labour market exit ......................................................... 52 Old-age pension: Frequent changes reduce predictability ............................................ 53 Main challenges in the old-age pension system ........................................................... 57 Early retirement ............................................................................................................ 65 Disability pension ......................................................................................................... 68 Sickness benefits and rehabilitation ............................................................................. 70 Unemployment benefits ............................................................................................... 72 Social assistance ........................................................................................................... 75 Key policy recommendations ....................................................................................... 76 Notes ............................................................................................................................ 77 References .................................................................................................................... 77 Chapter 4. Encouraging employers in Poland to hire and retain older workers ...... 81 Better access to high quality jobs and flexible work .................................................... 82 Employment protection ................................................................................................ 91 AGEING AND EMPLOYMENT POLICIES: POLAND 2015 © OECD 2015 6 – TABLE OF CONTENTS Generating incentives for age diversity in employment ................................................. 94 Supporting the labour market mobility of older workers ............................................... 96 Productivity and wage ................................................................................................ 100 Age discrimination and negative attitudes ................................................................. 105 Promotion of age management .................................................................................... 107 Key policy recommendations ..................................................................................... 112 Notes .......................................................................................................................... 113 References .................................................................................................................. 114 Chapter 5. Strengthening the employability of older workers in Poland ................ 119 Key challenges ........................................................................................................... 120 Skills and training ...................................................................................................... 122 Health conditions ....................................................................................................... 130 The Public Employment Service (PES) ....................................................................... 136 Key policy recommendations ...................................................................................... 143 Notes .......................................................................................................................... 145 References .................................................................................................................. 145 Figures Figure 1.1. Demographic dependency ratios, OECD countries, 2012 and 2050 ....... 32 Figure 1.2. Active life expectancy at the age of 50, by gender, European countries, 2011 ................................................................................................................... 33 Figure 2.1. Employment rates of populations aged 55-64 and 65-69, OECD countries, 2013....................................................................................... 41 Figure 2.2. The older unemployed, OECD countries, 2007 and 2013 ...................... 42 Figure 2.3. Share of older persons neither employed nor completely retired, selected countries and EU average, 2002 and 2012 .......................................... 43 Figure 2.4. Socio-demographic disparities in employment, by age, gender and education level, Poland and OECD area, 2012 ................................................. 44 Figure 2.5. Expected number of years in employment between the ages of 55 and 64, by gender, 2011 and 2001 ..................................................................... 45 Figure 2.6. Retention rate after the age of 60, by gender, OECD countries, 2013 ................................................................................................................... 46 Figure 2.7. Hiring, separation and change in net employment rates of older workers, ages 55-64, Poland and EU21, 2001-13 ............................................. 47 Figure 2.8. Hiring and separation rates by age, European countries, 2013 ............... 48 Figure 2.9. Labour market status by single year of age (50-69) and gender, four OECD countries, 2012 ................................................................................ 50 AGEING AND EMPLOYMENT POLICIES: POLAND 2015 © OECD 2015 7 TABLE OF CONTENTS – Figure 3.1. Effective labour force exit age by gender, OECD countries, 1990-2012 .......................................................................................................... 52 Figure 3.2. Expected years in retirement by gender, OECD countries, 2012 ............ 53 Figure 3.3. Theoretical long-term net pension replacement rates, OECD countries ................................................................................................ 58 Figure 3.4. Newly granted disability pensions by age group, Poland, 1999-2012 .... 69 Figure 3.5. Registered and ILO unemployment rates, by age group, Poland, 2005-11 .............................................................................................................. 73 Figure 4.1. Distribution of employment by occupation and age group, Poland and selected countries, 2013 .................................................................. 82 Figure 4.2. Employment rate of older workers adjusted by the EU industry structure, Poland, 2002-13 ................................................................................. 83 Figure 4.3. Employment and participation in society after the age of 55 by region, Poland, 2011 ...................................................................................................... 84 Figure 4.4. Usual weekly hours worked by workers aged 55-64, by gender, OECD countries, 2012....................................................................................... 89 Figure 4.5. Share of part-time work by gender and age group, OECD countries, 2012 ................................................................................................................... 89 Figure 4.6. Incidence of temporary work, by age group, 2012 ................................. 90 Figure 4.7. Protection of permanent workers against individual and collective dismissals, OECD countries, 2013 .................................................................... 92 Figure 4.8. Hiring and separation rates by age group, Poland, 2001-13 ................... 97 Figure 4.9. Age-wage profiles by gender in Poland and other selected eastern European countries, 2010 ................................................................................ 101 Figure 4.10. Adjusted age-wage profiles in selected OECD countries, 2012 ......... 102 Figure 4.11. Age discrimination in the workplace, European countries, 2011........ 105 Figure 5.1. Employment rates for women by age group, Poland, OECD area and EU21, 1992-2013 ...................................................................................... 121 Figure 5.2. Progress in literacy skills of two generations, selected OECD countries, 2012 ................................................................................................ 123 Figure 5.3. Distribution of persons aged 55-64 by educational attainment, Poland and the European Union, 2003-13 ....................................................... 124 Figure 5.4. Work-related training in the age group 55-64 by gender and education level, European countries, 2012 ............................................... 125 Figure 5.5. Share of the age group 50-64 with serious health problems, European countries, 2012 ................................................................................ 131 Figure 5.6. Estimated probability of being employed by single year of age and health status, Poland and the European Union, 2011 ............................... 131 Figure 5.7. Index of strenuous working conditions by age group and occupation, Poland and Europe, 2010 ................................................................................. 135 AGEING AND EMPLOYMENT POLICIES: POLAND 2015 © OECD 2015 8 – TABLE OF CONTENTS Tables Table 1.1. Ageing and employment policies: Poland, situation mid-2012 ................ 34 Table 2.1. Older workers scoreboard, Poland, the European Union and the OECD area, 2003, 2007 and 2013 ..................................................................... 40 Table 3.1. Phase-in of increased retirement age, Poland ........................................... 57 Table 3.2. Recipients of pension from the social insurance for farmers (KRUS), by gender and age group, 2013 .......................................................................... 64 Table 3.3. Bridging pensions by gender and age, Poland, 2012 ................................ 67 Table 3.4. Working days lost due to illness among different age groups, Poland, 2012 ................................................................................................................... 71 Table 3.5. Recipients of pre-retirement benefits by gender, Poland, 2011-13 .......... 75 Table 5.1. Unemployed persons participating in ALMPs, Poland, 2005-13 ........... 139 AGEING AND EMPLOYMENT POLICIES: POLAND 2015 © OECD 2015