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Poverty Dynamics in Poland. Selected Quantitative Analyses

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  • Miriam Beblo
  • Stanislawa Golinowska
  • Charlotte Lauer
  • Katarzyna Pietka
  • Agnieszka Sowa
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    Abstract

    The present report summarises the outcome of a research project carried out jointly by researchers of the Polish Center for Social and Economic Research Foundation (CASE) and the German Centre for European Economic Research (ZEW) and funded by the Volkswagen foundation. The objective of this project is to analyse the mechanisms at work in the rise and persistence of poverty during transition in Poland, as well as its consequences for selected groups of the population. The transition process from a centralised to a market economy in Poland has been accompanied by an unprecedented increase in poverty and a deepening of inequality across households - not only in terms of income but also in terms of socio-economic status. Although a small number of studies describing the economic situation of the poor in Poland have been undertaken, our understanding of the mechanisms that make poverty persist in the household context is considerably limited. The interaction of a number of factors may for example, result in individuals being trapped in a vicious circle of poverty. Low household income may lead to social exclusion and family distress, which is likely to have far-reaching consequences for all household members. Social exclusion may contribute to foster alcoholism, impede the human capital investment in children, and thus jeopardise the socioeconomic situation of the next generation. Socially excluded people experience severe difficulties in finding re-employment. Social transfers might even worsen the situation by providing a disincentive to seek work. We need to understand the causes underlying the developments in social and economic hardship of Polish families during the course of the transition process. The introductory chapter therefore offers a general look at the picture of poverty in Poland; trends and new research results are described. In order to improve our understanding of the causes of social exclusion and to contribute to filling the gap in research we do not, however, restrict our attention solely to the analysis of the extent and nature of poverty in general but rather focus our analysis on issues that have been somewhat overlooked. This project contributes to the literature by investigating empirically different dimensions of the poverty debate in Poland - ranging from social exclusion through the relationship between transfers and labour supply to the transmission of poverty across generations. The empirical analyses are carried out on the basis of individual and household histories which are observed in the Polish Labour Force Survey and of administrative data on social assistance beneficiaries.

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    Bibliographic Info

    Paper provided by CASE-Center for Social and Economic Research in its series CASE Network Reports with number 0054.

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    Length: 121 Pages
    Date of creation: 2002
    Date of revision:
    Handle: RePEc:sec:cnrepo:0054

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    Related research

    Keywords: alcohol abuse; education; labour supply; poverty; social exclusion; social transfers; unemployment;

    References

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    1. Willis, Robert J, 1986. "Human Capital and the Rise and Fall of Families: Comment," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages S40-47, July.
    2. Walsh, Patrick Paul & Sibley, Christopher W., 2002. "Earnings Inequality and Transition: A Regional Analysis of Poland," IZA Discussion Papers 441, Institute for the Study of Labor (IZA).
    3. Eswar Prasad & Michael P. Keane, 2000. "Inequality, Transfers and Growth - New Evidence From the Economic Transition in Poland," IMF Working Papers 00/117, International Monetary Fund.
    4. Becker, Gary S & Tomes, Nigel, 1986. "Human Capital and the Rise and Fall of Families," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages S1-39, July.
    5. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, vol. 82(3), pages 393-408, June.
    6. Ermisch, John & Francesconi, Marco, 2001. "Family Matters: Impacts of Family Background on Educational Attainments," Economica, London School of Economics and Political Science, vol. 68(270), pages 137-56, May.
    7. Robert Haveman & Barbara Wolfe, 1995. "The Determinants of Children's Attainments: A Review of Methods and Findings," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1829-1878, December.
    8. Taubman, Paul, 1989. "Role of Parental Income in Educational Attainment," American Economic Review, American Economic Association, vol. 79(2), pages 57-61, May.
    9. Scott Boggess, 1998. "Family structure, economic status, and educational attainment," Journal of Population Economics, Springer, vol. 11(2), pages 205-222.
    10. Okrasa,Wlodzimierz, 1999. "The dynamics of poverty and the effectiveness of Poland's safety net (1993-96)," Policy Research Working Paper Series 2221, The World Bank.
    11. Stephen V. Cameron & James J. Heckman, 1998. "Life Cycle Schooling and Dynamic Selection Bias: Models and Evidence for Five Cohorts of American Males," Journal of Political Economy, University of Chicago Press, vol. 106(2), pages 262-333, April.
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    Cited by:
    1. Marek Dabrowski & Oleksandr Rohozynsky & Irina Sinitsina, 2004. "Post-Adaptation Growth Recovery in Poland and Russia - Similarities and Differences," CASE Network Studies and Analyses 0280, CASE-Center for Social and Economic Research.

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