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Employment in Poland 2005

Author

Listed:
  • Maciej Bukowski

    (Warsaw School of Economics, Institute for Structural Research)

  • Piotr Lewandowski

    (Warsaw School of Economics, Institute for Structural Research)

  • Iga Magda

    (Ministry of Economy)

  • Malgorzata Sarzalska

    (Ministry of Economy)

  • Julian Zawistowski

    (Ministry of Economy, Institute for Structural Research)

Abstract

This publication is a non-technical report prepared for Polish Ministry of Economy and Labor. The main goal is to present a comprehensive statistical and econometric analysis of employment, unemployment and participation in Poland in the period 1998-2004 and confront Polish experiences with international empirical and theoretical studies in labor economics. Also the qualitative survey of institutional background of labor market in Poland is conducted. We complement our research with some policy prescriptions. At the moment Poland exhibits the highest unemployment rate in OECD and one of the lowest employment and participation rates. We begin with a detailed analysis of the reasons of the rapid decrease of employment and increase of unemployment in 1998- 1999 and its later persistence. We find that the supply-side characteristics and sectoral structure of the economy significantly influenced the strength and the durability of the effects of the Russian crisis of 1998 and of the adverse supply shock that affected Polish economy in 2001-2002. We scrutinize the ability of various groups of workers (by age and education level attained) to cope with both shocks and constantly undertaken restructuring. We also focus on structural mismatch between labour demand and labour supply in Poland. We find that the employment gap between Poland and UE15 is mostly due to low participation/employment of older workers in Poland, although individuals aged 15-24 also contribute to this gap. However, we show that low participation of young is mostly connected to lengthening of average education spells whereas older workers take advantage of the social security benefits subsidizing leisure. We complement our analysis with multinomial logit of transitions on Polish labor market. Then we turn to the role played educational system in the accumulation of the human capital by young people, and we evaluate the life-long learning in Poland. We find that schooling system is rather inefficient in shaping creativity and solving problems exceeding schematic procedures and algorithms. Then we focus on the influence exerted in Poland by standard labor market institutions, like social security system, taxes, minumum wages, trade unions, employment protection legislation, active labor market policy. In each case we begin with description of the shape of these institutions in Poland and then we empirically assess their relative importance for labour market performance.

Suggested Citation

  • Maciej Bukowski & Piotr Lewandowski & Iga Magda & Malgorzata Sarzalska & Julian Zawistowski, 2005. "Employment in Poland 2005," Labor and Demography 0512003, EconWPA, revised 19 Dec 2005.
  • Handle: RePEc:wpa:wuwpla:0512003
    Note: Type of Document - pdf; pages: 247
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    Citations

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    Cited by:

    1. Watson, Dorothy & Maitre, Bertrand & Russell, Helen, 2015. "Workplace Risks and Worker Outcomes in Ireland from a Comparative Perspective: An Analysis of the European Working Conditions Survey, 2005 and 2010," Research Series, Economic and Social Research Institute (ESRI), number RS46.
    2. Dan Andrews & Aida Caldera Sánchez & Åsa Johansson, 2011. "Towards a Better Understanding of the Informal Economy," OECD Economics Department Working Papers 873, OECD Publishing.
    3. Bartlomiej ROKICKI & Mieczyslaw W. SOCHA, 2008. "Effects of Poland's Integration with the EU: Structural Interventions and Economic Development in the Eastern Border Regions," The Journal of Comparative Economic Studies (JCES), The Japanese Society for Comparative Economic Studies (JSCES), vol. 4, pages 81-114, December.
    4. Anna Baranowska, 2011. "Trash contracts? The impact of temporary employment on leaving the parental home in Poland," Working Papers 44, Institute of Statistics and Demography, Warsaw School of Economics.
    5. Maciej Bukowski & Piotr Lewandowski, 2005. "Transitions from unemployment in Poland: a multinomial logit analysis," Labor and Demography 0511008, EconWPA, revised 19 Dec 2005.
    6. Martin Schindler & Mariya Aleksynska, 2011. "Labor Market Regulations in Low-, Middle- and High-Income Countries; A New Panel Database," IMF Working Papers 11/154, International Monetary Fund.
    7. Joanna Landmesser, 2011. "The Impact of Vocational Training on the Unemployment Duration," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 17(1), pages 89-100, February.
    8. Zenon Wisniewski & Monika Maksim, 2013. "Active Labour Market Policies in Poland," CESifo Forum, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 14(1), pages 22-28, May.

    More about this item

    Keywords

    Poland; unemployment; employment; participation; labor market institutions; social security; human capital in transition countries;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • P23 - Economic Systems - - Socialist Systems and Transition Economies - - - Factor and Product Markets; Industry Studies; Population

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