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How big are labour productivity disparities in Poland

Publication date: 16.11.2020

Financial Law Review, 2020, Issue 20 (4)/ 2020, pp. 1 - 21

https://doi.org/10.4467/22996834FLR.20.017.13089

Authors

,
Piotr Ciżkowicz
International Comparative Studies Department, Collegium of Economic Analysis, Warsaw School of Economics
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,
Aleksander Łaszek
Civil Development Forum (FOR)
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Andrzej Rzońca
International Comparative Studies Department, Collegium of Economic Analysis, Warsaw School of Economics
All publications →

Titles

How big are labour productivity disparities in Poland

Abstract

The ongoing discussion on inequalities in Poland focuses on household income. It ignores the scale of differences in labour productivity. In order to fill this gap, having combined national accounts and employment data we show that a narrow group of 7.2 million people working in non-financial and financial enterprises account for almost 60% of Polish GDP and 75% of income tax revenues and social security contributions from the private sector. This structure of the economy represents both an opportunity and a threat to growth prospects. Flows of new employees to the enterprise sector from micro-businesses of low productivity or agriculture can considerably increase their productivity. At the same time, however, large differences in productivity, leading to income disparities, create the temptation to tax productive entities more heavily in order to finance transfers to less productive ones, which in turn perpetuates the current structure of the economy.

References

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Information

Information: Financial Law Review, 2020, Issue 20 (4)/ 2020, pp. 1 - 21

Article type: Original article

Authors

International Comparative Studies Department, Collegium of Economic Analysis, Warsaw School of Economics

Civil Development Forum (FOR)

International Comparative Studies Department, Collegium of Economic Analysis, Warsaw School of Economics

Published at: 16.11.2020

Article status: Open

Licence: CC BY-NC-ND  licence icon

Percentage share of authors:

Piotr Ciżkowicz (Author) - 33%
Aleksander Łaszek (Author) - 33%
Andrzej Rzońca (Author) - 34%

Classification number:

JEL Classification System:

Employment | Unemployment | Wages | Intergenerational Income Distribution | Aggregate Human Capital | Aggregate Labor Productivity (E24)
Taxation, Subsidies, and Revenue: Incidence (H22)
Enterprise Policy (L53)
Formal and Informal Sectors | Shadow Economy | Institutional Arrangements (O17)
Productive Enterprises | Factor and Product Markets | Prices | Population (P42)

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Publication languages:

English

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Number of downloads: 709

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