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Legislation Publications Pension models About project Statistics

INTRODUCTION

CHAPTER I. Overview of gender issues in pension systems from different countries
1.1. Pension system reform and gender equality issues
1.2. European Union countries with a developed „social state”
1.3. Post-socialistic countries

CHAPTER 2. Gender analysis of pension and labor legislation of the Republic of Moldova
2.1. International labor standards and national legislation of the Republic of Moldova
2.2. Legal insurance of equal access to labor and professional occupations: employment guarantees
2.3. Right to free choice of profession, professional training and retraining, professional promotion. Restrictions related to women’s work
2.4. Equal remuneration for the work of equal value
2.5. Right to healthy and safe working conditions. Guarantees and privileges for pregnancy and maternity
2.6. Right to social insurance including right to pension

CHAPTER 3. Analysis of demographic context of gender issues in the Republic of Moldova
3.1. Gender asymmetry of sex/age structure of the population of the Republic of Moldova
3.2. Differences in conditions and causes of mortality of men and women, men’s over mortality rate
3.3. Gender discrepancy of the indexes of life expectancy in Moldova and their dynamics
3.4. Life expectancy on pension
3.5. Gender differences in the correlation between the duration of the working life and life on pension
3.6. Impact of birthrate on the workers length of insured service

CHAPTER 4. Labor market of the Republic of Moldova and its impact on the trends of pension system reform: gender aspects
4.1. Economic activity, employment and unemployment
4.2. Employment by economic sectors

CHAPTER 5. Salaries and incomes

CHAPTER 6. Informal employment

CHAPTER 7. Issues of social breaks in employment

CHAPTER 8. Gender issues of current pensioners
8.1. Gender structure of pensioners

CHAPTER 9. Forecast of the specifics of pension insurance of men and women, pension transfers between sexes in the established pension system

CHAPTER 10. Gender analysis of the formulas for old-age pension calculation
10.1. Analysis of old pension formula for calculation of old-age pension
10.2. Analysis of the new pension formula for calculation of old-age pension
10.3. Change of gender discrepancy in pensions in the transition to the new pension formula

CHAPTER 11. Increase of the retirement age. Equalizing the retirement age?
11.1. Advantages and disadvantages of the retirement age increase and its “equalization” for men and women
11.2. Individual pension burden or correlation between the duration of the able-bodied age and duration of life on pension
11.3. Change of the probability of living until the retirement for men and women under different scenarios of the retirement age increase

CONCLUSIONS

BIBLIOGRAPHY




Gender aspects of the Republic of Moldova’s pension system

4.2. Employment by economic sectors

As it was above-mentioned according to the sector employment structure Moldova is an agrarian country. More than 40% of employed are engaged in the agricultural sector and in this relation the employment of men and women does not differ. As for other economic branches here it is noticed a considerable horizontal segregation (in this case sectoral) – unequal breakdown of men and women by the national economic branches. The women are engaged in trade, hotel and restaurant activity, as well as in budget sectors: education, health and social services, but they are not engaged actually in construction and transport. The breakdown of men by economic sectors is more uniform (Picture 15).

Note. Agricultural sector includes agriculture, forestry, hunting and fishery. The trade sector includes trade, hotel services and restaurant activity. The transport sector includes transport and communications. The public sector includes the state (public) administration, education, health and social services. However, on the whole in the latest sector the state ownership prevails, this group could also include non-governmental enterprises and organizations.

Source: data of the National Statistics Bureau.

The intersectoral  breakdown of employed men and women is characterized by a considerable vertical segregation – prevalence of men on managerial positions according to branch specifics. The diagram 16 reflects the weight of some job groups in the total number of employed men and women. If the women are more often engaged as farmers, trade and services’ workers, technicians and experts, the men work as executive senior officials of public administration and managers of companies. The men are twice more in the group “other categories”, which includes, from the one side, new professions and activity directions, and, from the other side, unqualified workers. At the same time according to the last criteria (unqualified work), the differences between men and women are not so great. Thus, the unqualified workers constitute 16% out of employed men and 13% out of the employed women1.

Note. Managers: members of legislative, executive senior officials of public administration, managers of economic, social and political units. Experts: experts with intellectual and scientific occupation. Technicians and foremen: technicians, foremen and assimilated. Administrative employees: administrative clerks. Trade and services workers: workers in services and trade and assimilated. Farmers and others: farmers, workers skilled in agriculture, forestry, hunting and fishery. Qualified workers: artisans and skilled workers  in handicraft, machinery and equipment regulation and maintenance. Other categories – not defined; amongst them the unqualified labor workers constitute 50% for men and 95% for women.
Source: data of the National Statistics Bureau.

The above-mentioned breakdown of men and women labor force by economic branches and activity directions is characteristic for many post-socialistic countries and is related to the traditional division of professions by men’s and women’s, characteristic for soviet times. On the basis of this division there were factors like high status and remuneration of “men’s” jobs and, correspondingly, less high status and low remuneration of “women’s” professions. Therefore, in those sectors, where during reforms a considerable change of gender composition of workers occurred, this was conditioned by changes in the relative remuneration in the corresponding sectors (the increase of the relative remuneration rate in the branch led to the reduction of women, employed in this sector and, on the contrary, the reduction of the relative remuneration rate led to the increase of the employed women’s rate) (Picture 17).

Note. Agricultural sector – including forestry and hunting. Trade – retail and wholesale commerce, Transport – including communications. Administration – state (public) administration. Health – including social insurance. According to the data on enterprises staffed with 20 and over persons.
Source: data of the National Statistics Bureau.

Conclusions

The parameters, defining the dynamics of employment and economic activity are mainly conditioned by the factors not related to the country labor market (reorganization of labor market institutes in the country, migration fluctuations, conditioned by the improvement/worsening of immigration climate in the countries-recipients of the main migration flows from Moldova, imperfective data collection).

The decrease of the economic activity and population (both men and women) employment rate, noticed in the last years, has a negative impact on the stability of pension system, proper realization of its functions, because the number of payers of contributions to the pension fund is reducing and, correspondingly, the pension burden on the fund and current payers is increasing. Besides in future this situation shall influence negatively the amount of “pension accumulations” of future pension beneficiaries.

Of a special concern is the fact that the reduction of economic activity and employment in the country occurs due to young and middle age workers (i.e. the most qualified and productive labor force, being at the same time the most mobile). It is obvious that by maintaining this trend in future many young workers shall have difficulties with the formation of 30-years length of insured  service, required  (according to the national pension law) for old-age pension granting.

Comparing the dynamics of men’s and women’s employment for the periods 2002-2005 and 2003-2005 two significant regularities are to be mentioned. Firstly, the amendment of pension law led to employment stability at old ages in 2003-2005, however it did not break a stronger impact of informal economy on labor market. The possibilities of increasing the standard of living, ensured by the informal employment and shadow incomes, have a stronger impact on the economic behavior of population than the advantages, ensuring a high length of service and increase of individual pension accumulations. Secondly, for the older generation the amendment of pension law for the adjustment of the behavior on labor market was more efficient than for the workers of young and middle age. The reason is not in forthcoming pension, but in lower mobility and smaller competitiveness of older generation.


1. Women and men in the Republic of Moldova. – Chisinau: Statistica, 2005. – page 26.

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