Poland's Labor Market : The Challenge of Job Creation
The study reviews recent labor market developments in Poland, examining the factors behind the rise in unemployment, and, proposing actions that should contribute to increased job creation rates. Its main purpose is to inform - based on research fi...
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| Language: | English en_US |
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Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2001/10/1614959/polands-labor-market-challenge-job-creation http://hdl.handle.net/10986/13982 |
| Summary: | The study reviews recent labor market
developments in Poland, examining the factors behind the
rise in unemployment, and, proposing actions that should
contribute to increased job creation rates. Its main purpose
is to inform - based on research findings - on the policy
dialogue regarding the current labor market situation in the
country. Those main findings indicate that the rise in
unemployment results primarily from an acceleration of job
destruction, that begun with the wave of enterprise
restructuring in the aftermath of the Russia crisis, and has
persisted in part, because of an imbalance in the
fiscal-monetary policy mix. It also finds that the recent
rise in unemployment has highlighted important barriers in
the transition from old, to new jobs. These barriers include
a binding minimum wage, high taxes on labor income,
limitations in the labor code, and a relatively easy access
to early retirement, and other social benefits.
Additionally, the problems with the ongoing restructuring of
the Polish labor market have been compounded by an increase
in new labor market entrants, primarily recent school
graduates joining the labor force, and, of particular
concern are the new labor market entrants with only basic
vocational education or less, namely in rural areas, given
that educational attainment is a determining factor on
employment status. The policy agenda needs to gradually
address unemployment issues, through better fiscal-monetary
policy mix, through greater flexibility in the wage
structure, and, through tax reductions on labor income, and
changes in the labor code. Moreover, investments in
worker's education and training needs to be improved,
realigning the incentives under labor market programs, and
lowering the costs of starting, and running businesses. |
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