Employment in Poland 2011. Poverty and Jobs

It is with great pleasure that we present the seventh edition of ‘Employment in Poland’. This edition is devoted to the issue of poverty. Growth of prosperity is not distributed evenly among the Polish citizens, and some of them still cannot satisfy even basic needs. The improvement of an overall economic situation reduces risk of poverty in general. However, in case the risk occurs, efficient and effective support measures should be provided. First part of the report defines poverty, and explains the extent of the connection with such phenomena as economic deprivation or social exclusion. It is vital, as the exact criterion of poverty is ambiguous. Having discussed these issues, we elaborate on the characteristics of poverty in Poland as compared to those observed in other Member States of the European Union, as well as their regional and local dimensions. The key element of this part is to determine the causes of poverty, i.e. to what extent poverty results from the features of national and regional economy, and to what extent from individual characteristics of people. The topics introduced in this part form background for subsequent parts of the report. The second part is devoted to the poverty of certain social groups such as elderly, children, unemployed and rural. Conducted analyses allow to dispel some of the myths in this matter, as well as to bring out the characteristics that are particularly important from the perspective of creating the support instruments for groups that are at risk of poverty. The issue of poverty among children is scrutinised from the intergenerational perspective, and its determinants and possible measures of preventing the phenomenon are discussed. The third part focuses on relations between income inequalities and situation on the labour market. In this part changes in distribution of wages in Poland are confronted with the poverty dynamics. They are supplemented with a reflection on the impact on poverty exerted by changes in the Polish society, including (but not limited to) those concerning household structure or economic activity of women. The phenomenon of so called working poor is also scrutinised here. We determine, inter alia, whether the characteristics of household or of work performed are more important causes of in-work poverty. We also elaborate on the question if situation of poor households is persistent or low-paid employment enables them to get out of poverty. The fourth part discusses available tools and instruments to fight the poverty. The state of affairs described in first three parts allows to take a closer look on efficiency and effectiveness of social policy measures applied in Poland, both tax and benefit based. Special attention is drawn to the issue of financial support of families with children as an element of social and demographic policy. The key features of this part are simulations of the impact of hypothetical changes in currently functioning system on rate of poverty in Poland. The recommendations for public policy constitute the summary of the report.