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 fin...
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2015
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| 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 |
| Summary: | 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. |
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