OECD Economics Department Working Papers
Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.
The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.
- ISSN: 18151973 (online)
- https://doi.org/10.1787/18151973
Challenges to Sustain Poland's Growth Model
Notwithstanding a very strong economic performance over the past decade or so, Poland’s per capita
income is substantially lower in comparison with the United States and per capita income growth will be
sharply slowing down over the coming decades under the scenario of gradual policy changes mostly
because of population ageing. Bold structural reforms are needed to boost labour productivity and labour
resource utilisation. This paper argues that in order to increase labour resource utilisation, policy action
should focus on raising the effective retirement age, encourage childbearing and lower high unemployment
rates for young people and the unskilled via increased and more efficient active labour market policies.
Labour productivity could be boosted via rendering the tax system more growth friendly, reducing product
market regulation (including heavy government involvement in the economy, high administrative costs of
running and starting businesses and increasing competition in uncompetitive segments of the economy).
Investing in human capital and encouraging innovation are also essential for long-term productivity
growth.
Keywords: potential growth, structural reforms, economic growth, Poland
JEL:
E6: Macroeconomics and Monetary Economics / Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook;
F4: International Economics / Macroeconomic Aspects of International Trade and Finance;
N4: Economic History / Government, War, Law, International Relations, and Regulation;
F3: International Economics / International Finance
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