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Economic growth, income distribution, and poverty in Poland during transition

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  • Paci, Pierella
  • Sasin, Martin J.
  • Verbeek, Jos

Abstract

The authors attempt to analyze the linkages between macroeconomic policies and economic growth variables, their movement over time, and their impact on poverty in the case of Poland. Poland, a middle-income country, is of particular interest because its data sources allow for a relatively detailed analysis of such developments, and the macroeconomic environment and the economic growth variables show a relatively sizable degree of variance. In addition, Poland has struggled in the past few years to reduce poverty while still experiencing positive economic growth. The authors show that in Poland, poverty-reducing growth depends heavily on the ability of the economy to generate jobs. During the early years of transition, net job growth was positive, while after the Russian crisis of 1998, productivity gains were accomplished mostly through labor shedding, henceforth, increasing poverty in Poland. In addition, the authors identify how fiscal and social protection policies affect income distribution and poverty in Poland.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3467.

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Date of creation: 01 Dec 2004
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Handle: RePEc:wbk:wbrwps:3467

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Keywords: Economic Theory&Research; Environmental Economics&Policies; Services&Transfers to Poor; Poverty Impact Evaluation; Economic Conditions and Volatility; Inequality; Governance Indicators; Environmental Economics&Policies; Achieving Shared Growth; Economic Theory&Research;

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  1. World Bank, 2001. "Poland's Labor Market : The Challenge of Job Creation," World Bank Publications, The World Bank, number 13982, October.
  2. Ravallion, Martin & Chen, Shaohua, 1997. "What Can New Survey Data Tell Us about Recent Changes in Distribution and Poverty?," World Bank Economic Review, World Bank Group, vol. 11(2), pages 357-82, May.
  3. Adams, Richard H. Jr., 2003. "Economic growth, inequality, and poverty : findings from a new data set," Policy Research Working Paper Series 2972, The World Bank.
  4. Kakwani, Nanok C, 1977. "Measurement of Tax Progressivity: An International Comparison," Economic Journal, Royal Economic Society, vol. 87(345), pages 71-80, March.
  5. Shorrocks, A F, 1982. "Inequality Decomposition by Factor Components," Econometrica, Econometric Society, vol. 50(1), pages 193-211, January.
  6. Ravallion, Martin & Shaohua Chen, 2001. "Measuring pro-poor growth," Policy Research Working Paper Series 2666, The World Bank.
  7. Bruno, Michael & Ravallion, Martin & Squire, Lyn, 1996. "Equity and growth in developing countries : old and new perspectives on the policy issues," Policy Research Working Paper Series 1563, The World Bank.
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