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Safety Net Still in Transition: Labour Market Incentive Effects of Extending Social Support in Poland

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Author Info
Peter Haan () (DIW Berlin)
Michal Myck () (DIW Berlin, IFS and IZA)

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Abstract

Many aspects of the economic transition which started in 1989 in Poland are by now complete. However, the route Polish governments have so far taken concerning the system of support for low-income families still implies very different poverty alleviation schemes compared to those found in many developed countries. We examine the Polish system of social assistance in a comparative context with Germany and focus on its implications for financial incentives to work. The paper shows the effect of extending the financial support system for poorest families in Poland on labour market incentives. We demonstrate that assumptions concerning sharing of resources among families within households have significant implications on the resulting financial incentives and importantly change the implied consequences of the reforms. This is the case especially for single-adult families. 74% of single adults without children, and 53% of lone parents in Poland live in multi-family households.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3157.

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Length: 38 pages
Date of creation: Nov 2007
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Handle: RePEc:iza:izadps:dp3157

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Related research
Keywords: work incentives; social assistance; within-household sharing; transition;

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Find related papers by JEL classification:
J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Peter Haan & Michal Myck, 2007. "Apply with Caution: Introducing UK-Style In-Work Support in Germany," Fiscal Studies, Institute for Fiscal Studies, vol. 28(1), pages 43-72, 03. [Downloadable!] (restricted)
  2. Olivier Bargain & Leszek Morawski & Michal Myck & Mieczyslaw Socha, 2007. "As SIMPL As That: Introducing a Tax-Benefit Microsimulation Model for Poland," IZA Discussion Papers 2988, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Richard Blundell & Alan Duncan & Julian McCrae & Costas Meghir, 2000. "The labour market impact of the working families’ tax credit," Fiscal Studies, Institute for Fiscal Studies, vol. 21(1), pages 75-103, March. [Downloadable!]
  4. Bonin, Holger & Kempe, Wolfram & Schneider, Hilmar, 2002. "Household Labor Supply Effects of Low-Wage Subsidies in Germany," IZA Discussion Papers 637, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Nickell, Stephen, 2001. " Fundamental Changes in the UK Labour Market," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 63(0), pages 715-36, Special I. [Downloadable!] (restricted)
  6. Bargain O & Orsini K, 2004. "In Work Policies In Europe: Killing Two Birds With One Stone?," EUROMOD Working Papers EM4/04, EUROMOD at the Institute for Social and Economic Research. [Downloadable!]
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  7. Brewer, Mike & Duncan, Alan & Shephard, Andrew & Suarez, Maria Jose, 2006. "Did working families' tax credit work? The impact of in-work support on labour supply in Great Britain," Labour Economics, Elsevier, vol. 13(6), pages 699-720, December. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Haan, Peter & Myck, Michal, 2008. "Multi-Family Households in a Labour Supply Model: A Calibration Method with Application to Poland," IZA Discussion Papers 3611, Institute for the Study of Labor (IZA). [Downloadable!]
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