Cover IMF Staff Country Reports
Republic of Poland: Selected Issues
Author: International Monetary Fund. European Dept.
Series:
IMF Staff Country Reports
Volume/Issue:
Volume 2019: Issue 038
Language:
English
Publication Date:
06 Feb 2019
DOI:
https://doi.org/10.5089/9781484397541.002
ISBN:
9781484397541
ISSN:
1934-7685
Pages:
28
Keywords:
ISCR; CR; firm; wage; share; nominal wage; wage growth; dampening effect; TFP dynamics; ownership structure; laggard firm; support wage; Total factor productivity; Wages; Real wages; Employment; Labor productivity; Global; Eastern Europe
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This Selected Issues papers review factors that drive wage growth in Poland and studies structural characteristics and firm-level total factor productivity (TFP) in Poland and Emerging Europe. The increase in real unit labor costs (RULC) occurred alongside an unprecedently tight labor market. The study highlights that the more subdued RULC dynamics compared with the pre-crisis period, despite the now-lower unemployment rate, may reflect the recent influx of foreign workers. In order to more systematically identify the long- and short-term drivers of Polish wages, an Error-correction model has been used. Analyses presented in the paper using both Statistics Poland and Orbis data show that foreign-owned firms are associated with strong TFP performance through above-average TFP levels and growth rates. The findings suggest the need to create an environment conducive to entrepreneurship by reducing barriers to entry and ensuring a level playing field between state owned and private firms, while also avoiding barriers to scaling up businesses while encouraging investments in innovation and research and development.
Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund