Economic Growth, Income Distribution and Poverty in Poland During Transition

18 Pages Posted: 4 Jan 2005

See all articles by Pierella Paci

Pierella Paci

World Bank

Marcin J. Sasin

World Bank - Europe and Central Asia Region

Jos Verbeek

World Bank - Development Prospects Group

Date Written: December 2004

Abstract

This paper attempts 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, but also because of macroeconomic environment and the economic growth variables show a relatively sizable degree of variance. In addition, Poland has struggled in the last few years to reduce poverty while still experiencing positive economic growth. The paper will 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, but after the Russian crisis of 1998, productivity gains were accomplished mostly through labor shedding, consequently increasing poverty in Poland. In addition, the paper identifies how fiscal and social protection policies impact Poland's income distribution and poverty trends.

Suggested Citation

Paci, Pierella and Sasin, Marcin J. and Verbeek, Jos, Economic Growth, Income Distribution and Poverty in Poland During Transition (December 2004). Available at SSRN: https://ssrn.com/abstract=643241

Pierella Paci (Contact Author)

World Bank ( email )

Washington, DC 20433
United States

Marcin J. Sasin

World Bank - Europe and Central Asia Region ( email )

1818 H Street
Washington, DC 20433
United States

Jos Verbeek

World Bank - Development Prospects Group ( email )

United States

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