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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

  • Haan, Peter

    ()
    (DIW Berlin)

  • Myck, Michal

    ()
    (Centre for Economic Analysis, CenEA)

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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Bibliographic 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
Date of revision:
Handle: RePEc:iza:izadps:dp3157

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

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References

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  1. Peter Haan & Michal Myck, 2006. "Apply with Caution: Introducing UK-Style In-work Support in Germany," Discussion Papers of DIW Berlin 555, DIW Berlin, German Institute for Economic Research.
  2. Arthur van Soest, 1995. "Structural Models of Family Labor Supply: A Discrete Choice Approach," Journal of Human Resources, University of Wisconsin Press, vol. 30(1), pages 63-88.
  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.
  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).
  5. Bargain, Olivier & Morawski, Leszek & Myck, Michal & Socha, Mieczyslaw, 2007. "As SIMPL As That: Introducing a Tax-Benefit Microsimulation Model for Poland," IZA Discussion Papers 2988, Institute for the Study of Labor (IZA).
  6. Bargain, Olivier & Orsini, Kristian, 2006. "In-work policies in Europe: Killing two birds with one stone?," Labour Economics, Elsevier, vol. 13(6), pages 667-697, December.
  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.
  8. 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.
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Citations

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Cited by:
  1. Peter Haan & Michał Myck, 2012. "Multi-family households in a labour supply model: a calibration method with application to Poland," Applied Economics, Taylor & Francis Journals, vol. 44(22), pages 2907-2919, August.
  2. Joanna Tyrowicz, 2009. "When Eastern Labour Markets Enter Western Europe CEECs. Labour Market Institutions upon Euro Zone Accession," Working Papers 2009-03, Faculty of Economic Sciences, University of Warsaw.
  3. Bargain, Olivier & Morawski, Leszek & Myck, Michal & Socha, Mieczyslaw, 2007. "As SIMPL As That: Introducing a Tax-Benefit Microsimulation Model for Poland," IZA Discussion Papers 2988, Institute for the Study of Labor (IZA).

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