In-Work Poverty in Poland : Diagnosis and Possible Remedies
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World Bank Group, Washington, DC and Institute of Structural Research, Warsaw
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In this paper the authors 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. The authors 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
European Union (EU) and Organization of Economic Cooperation
and Development (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: the author presents four policy recommendations
aimed at tackling in-work and total poverty, and at
increasing labor market participation and employment.
Palabras clave
ABSOLUTE POVERTY, ABSOLUTE POVERTY LINE, ABSOLUTE TERMS, AGRICULTURAL WORKERS, CALORIES PER PERSON, CIVIL LAW, CONSTRUCTION WORKERS, CONSUMER PRICES, CUMULATIVE DISTRIBUTION, DAILY CALORIES, DETERMINANT OF POVERTY, DISABILITY PENSION, DISABILITY PENSIONS, ECONOMIC ACTIVITY, EDUCATIONAL ATTAINMENT, ELIGIBILITY, EMPLOYMENT OF WOMEN, EMPLOYMENT PROMOTION, EMPLOYMENT STATUS, ESTIMATION RESULTS, FAMILIES WITH CHILDREN, FAMILY BENEFIT SYSTEM, FAMILY BENEFITS, FARM WORKERS, FARMER, FARMERS, FARMING HOUSEHOLDS, FEMALE WORKERS, GINI COEFFICIENT, GINI INDEX, HEALTH INSURANCE, HOLDING, HOUSEHOLD BUDGET, HOUSEHOLD HEADS, HOUSEHOLD INCOME, HOUSEHOLDS WITH CHILDREN, HUMAN CAPITAL, INCIDENCE OF POVERTY, INCOME DIFFERENTIALS, INCOME DISTRIBUTION, INCOME LEVELS, INCOME TAX, INCOME TAXES, INEQUALITY, INFLATION, INFORMAL EMPLOYMENT, INSURANCE, LABOR FORCE, LABOR MARKET, LABOR MARKET POLICIES, LIVING STANDARDS, LOW POVERTY RATE, LOW POVERTY RATES, LOW WAGES, MACROECONOMIC FLUCTUATIONS, MARGINAL EFFECT, NON -POOR HOUSEHOLDS, NON-POOR HOUSEHOLDS, OLD AGE, OLD AGE PENSION, OLD-AGE PENSION, OLD-AGE PENSIONS, POLICY CHANGES, POLICY MAKERS, POOR, POOR HOUSEHOLDS, POOR INDIVIDUALS, POOR PEOPLE, POOR PERSONS, POVERTY GAP, POVERTY GAP INDEX, POVERTY INCIDENCE, POVERTY LINE, POVERTY LINES, POVERTY MEASURE, POVERTY RATE, POVERTY RATES, POVERTY REDUCTION, POVERTY RISK, POVERTY THRESHOLD, PUBLIC POLICY, PUBLIC SECTOR, REDUCTION OF POVERTY, RELATIVE IMPORTANCE, RETURNS, SELF-EMPLOYMENT, SIGNIFICANT CORRELATION, SOCIAL ASSISTANCE, SOCIAL INSURANCE SYSTEM, SOCIAL SECURITY, SUBSISTENCE, TAX, TAX BENEFIT, TAX CREDIT, TAX DEDUCTION, TAX RATE, TAX RATES, TAX SYSTEM, TAXATION, TECHNICAL ASSISTANCE, TOTAL POVERTY, TOTAL POVERTY RATE, TRANSITION ECONOMIES, UNEMPLOYMENT, WAGE GROWTH, WAGE LEVEL, WITHDRAWAL, WORKING POOR