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In-Work Poverty in Poland: Diagnosis and Possible Remedies

Author

Listed:
  • Piotr Lewandowski
  • Agnieszka Kaminska

Abstract

In this paper we analyze the evolution and the determinants of in-work poverty in Poland, according to three poverty lines: relative, absolute, and the 1998-adjusted poverty line. We find that behind moderately high in-work poverty incidence in Poland there is very high in-work poverty in agriculture and modest in-work poverty in all other sectors. Workers are much less likely to be poor than jobless individuals, especially the unemployed. In fact, the share of adults out of employment is a much stronger predictor of households’ risk of poverty than the level of wages at which they work. Moreover, the share of jobless adults or of agricultural workers has become an increasing determinant of in-work poverty over time. The risk of in-work poverty is also inversely related to the educational attainment and the stability of employment of an individual, which is especially important considering that the incidence of temporary contracts in Poland is the highest across both EU and OECD countries. Existing fiscal and benefit policies have not been sufficient to address in-work poverty and some of its underlying causes in the labor market: we propose four policy recommendations aimed at tackling in-work and total poverty, and at increasing labor market participation and employment.

Suggested Citation

  • Piotr Lewandowski & Agnieszka Kaminska, 2015. "In-Work Poverty in Poland: Diagnosis and Possible Remedies," IBS Research Reports 01/2015, Instytut Badan Strukturalnych.
  • Handle: RePEc:ibt:report:inworkpoverty
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    File URL: http://ibs.org.pl/app/uploads/2015/01/In-Work-Poverty-in-Poland_Diagnosis-and-Possible-Remedies.pdf
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    References listed on IDEAS

    as
    1. Christopher T. Whelan & Bertrand Maitre & Brian Nolan, 2011. "Analysing Intergenerational Influences on Income Poverty and Economic Vulnerability with EU-SILC," Working Papers 201125, Geary Institute, University College Dublin.
    2. Iga Magda & Monika Potoczna, 2014. "Does flexible employment pay? European evidence on the wage perspectives of female workers," IBS Working Papers 3/2014, Instytut Badan Strukturalnych.
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    Citations

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    Cited by:

    1. Marek Gora & Piotr Lewandowski & Maciej Lis, 2017. "Temporary employment boom in Poland – a job quality vs. quantity trade-off?," IBS Working Papers 04/2017, Instytut Badan Strukturalnych.
    2. Piotr Arak & Piotr Lewandowski & Piotr Zakowiecki, 2014. "Dual labour market in Poland – proposals for overcoming the deadlock," IBS Policy Papers 1/2014, Instytut Badan Strukturalnych.

    More about this item

    Keywords

    in-work poverty; Poland;

    JEL classification:

    • J0 - Labor and Demographic Economics - - General
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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