The ongoing discussion in Poland about the wide variation in wages and income inequality focuses on the distribution of value added between employees (wages), employers The ongoing debate in Poland on high wage gaps and income inequality focuses on the division of value added in the economy between employees (wages ), employers (profits) and wages (profits). state (taxes). This cancels out the key problem of the great variation of productivity in the economy In Poland, the efforts of many people working in inefficient entities are ineffective, which translates into low wages and low wages. low contribution to economic growth.
Thanks to the decisive market reforms launched in 1989, Poland has become the most dynamic country in our region. The development of private entrepreneurship, openness to the world, foreign investment and privatization of public enterprises have allowed a rapid increase in the efficiency of work in private enterprises. Domestic and foreign firms employing 10 or more people accounted for at least two-thirds of the economic growth after 1995.
Despite the success of the last 28 years in Poland, in addition to the modern firms competing on the international markets, there is much more very low productivity. We estimate that half of Polish GDP is produced by up to 5.6 million people who work mainly in capital companies (19459008)
The Persistence of Large Differences in Productivity in the Combined Economy to a low professional activity distinguishes Poland from the countries of Western Europe. While in Poland, half of the value added is generated by a very small group, which represents only 26% of the population aged 20 to 64, in countries like Germany, the Netherlands Sweden or Denmark, this index varies between 38% and 42%. In the case of Poland, which is trying to catch up with the West and join the richest countries, it is a mistake to focus the debate on the "redistribution" of our added value even weaker than that from the West. Increasing the tax and regulatory burden of a small portion of the workforce in the most successful companies will only complicate the development of these businesses by freezing the current structure of the economy Instead of increasing the creation of high-productivity jobs, we should focus on how to increase their accessibility for low-income people, living in small towns without access to markets. deep or economically inactive work. Their current wasted energy is an important reserve, the best use of which can contribute to faster economic growth, while providing them with higher wages.
The full text of the analysis can be viewed at FOR.
Authors:
Dr Aleksander Łaszek
Vice President and Chief Economist FOR
Rafał Trzeciakowski
Economist FOR
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He sent:
Forum for Civic Development
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