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Contents of issue 11-12/2012

Eugeniusz Kwiatkowski, Przemysław Włodarczyk - The Impact of Employment Protection Legislation on the Labor Market Under a Negative Economic Shock, summary, article

Krzysztof Bartosik - Demand- and Supply-Side Determinants of Unemployment in Poland, summary, article

Piotr Ciżkowicz, Andrzej Rzońca, Wiktor Wojciechowski - Determinants of Regional Variations in Employment Growth in Poland from 1999 to 2008, summary, article

Tomasz Gajderowicz, Gabriela Grotkowska, Leszek Wincenciak - Determinants of Unemployment Duration Among Graduates in Poland, summary, article

Piotr Strożek - The Knowledge Potential of the Polish Economy in World Bank Research, summary, article

Grzegorz Bywalec - Dilemmas of Decentralization in the Contemporary World, summary, article


Mary C. Daly, Bast Hobijn, Ayşeqül Şahin, Robert G. Valletta - A Search and Matching Approach to Labor Markets: Did the Natural Rate of Unemployment Rise?, article


Book Review: Dominik Kopiński, Pomoc rozwojowa. Teoria i polityka (Development Assistance: Theory and Politics), Difin, Warsaw 2011, 233 pp. - reviewed by Piotr Ważniewski

Book Review: Sławomir I. Bukowski, Józef Misala, Wzrost gospodarczy i finanse międzynarodowe (Economic Growth and International Finance), CeDeWu.pl Wydawnictwa Fachowe, Warsaw 2011, 304 pp. - reviewed by Marek Lubiński


Globalization – Politics – Ethics - Tadeusz Smuga

Index of Publications in 2012

Eugeniusz Kwiatkowski, Przemysław Włodarczyk - The Impact of Employment Protection Legislation on the Labor Market Under a Negative Economic Shock

The article is concerned with the problem of employment protection legislation (EPL) and its impact on the labor market, especially on employment and unemployment. The purpose of the discussion is to determine the nature and scope of employment protection legislation and to examine its influence on labor markets in OECD countries.
Employment protection is a set of standards and procedures governing the dismissal of workers and, as such, it has an influence on employment, unemployment and wages.
The impact of employment protection legislation on the labor market is transmitted by two major mechanisms: a direct weakening of fluctuations in employment and unemployment and falling profits, a factor that reduces demand for labor. The authors hypothesize that there is a U-shaped relationship between the level of employment protection and employment/unemployment.
The hypothesis that employment protection legislation has an impact the labor market was tested empirically using data for 26 OECD countries from the 2008-2011 period. The results show that it is reasonable to expect major declines in employment (accompanied by increases in unemployment) during a crisis in countries where employment protection legislation is either relatively weak or relatively strong. The smallest decreases in employment (increases in unemployment) during the crisis can be expected in countries in which the EPL indicator is close to 2.

Keywords: employment protection legislation, labor market institutions, employment, unemployment
JEL classification codes: J65, J68
Article: PDF

Krzysztof Bartosik - Demand- and Supply-Side Determinants of Unemployment in Poland

The aim of the paper is to determine to what extent fluctuations in the level of unemployment in Poland in the last two decades have depended on changes in labor demand and labor supply. To this end, the contribution of labor demand and labor supply to changes in the unemployment rate is examined and then trends in labor demand and labor supply and their key determinants are analyzed. The study finds that changes in labor demand were the main determinant of unemployment fluctuations. A decrease in labor demand contributed to strong unemployment growth at the beginning of the 1990s and at the turn of the century, when the economic slowdown was associated with transformation and pre-accession restructuring respectively. An increase in labor demand caused by economic recovery after EU accession was behind the subsequent fall in unemployment. For most of the time span of the analysis, labor supply was a factor alleviating negative developments on the labor market due to the possibility of early retirement, easy access to disability pensions and labor force migration. Growing labor supply contributed to a rise in unemployment only at the end of the last decade. The fact that labor demand had a stronger impact on the level of unemployment than labor supply indicates that labor market policy should focus on job creation, not on “manipulation” of labor supply, the author concludes.

Keywords: unemployment, labor demand, labor supply, employment protection legislation, tax wedge, early retirement, labor migrations
JEL classification codes: E24, J22, J23
Article: PDF

Piotr Ciżkowicz, Andrzej Rzońca, Wiktor Wojciechowski - Determinants of Regional Variations in Employment Growth in Poland from 1999 to 2008

The paper aims to empirically analyze the determinants of regional variations in employment growth in Poland during the period of 1999-2008. The authors expand the typical set of variables used to explain regional changes in employment – which include the wage and value added growth rates – to include export momentum as an indicator of a region’s competitiveness and as a variable that is likely to significantly influence the employment growth rate.
As a research method, the authors estimate panel cross-section models of regional diversity in annual employment growth rates in Poland. The main results of the analysis are that regional employment growth is accompanied by (i) an increased volume of exports, (ii) a high level of education among workers, and (iii) entrepreneurship measured by the rate at which new businesses are established. The results indicate that a regional economic policy designed to promote the development of exports and entrepreneurship could significantly contribute to an increase in employment, the authors say.

Keywords: employment, exports, panel models
JEL classification codes: R11, R15, R22
Article: PDF

Tomasz Gajderowicz, Gabriela Grotkowska, Leszek Wincenciak - Determinants of Unemployment Duration Among Graduates in Poland

The paper analyzes the determinants of unemployment duration among graduates in Poland. The data used in the paper comes from a survey carried out among graduates in 2007. The determinants of unemployment duration were examined using a survival analysis method. A number of personal characteristics of the graduates (including sociodemographic factors, education, human capital, job search methods and international experience) as well as regional variables were taken into account. A Cox proportional hazards model was estimated using the maximum likelihood method for the entire sample and for subsamples broken down by type of location. The results validate the hypothesis that the same characteristics have a different impact on the duration of unemployment among graduates in different regions.
Demographic characteristics such as gender and marital status are significant predictors of job search duration in rural areas, while characteristics associated with social activities play a role in urban areas (with a particularly strong impact in large cities). A higher level of education means less time spent looking for a job, the authors say.

Keywords: graduates, labor market, long-term unemployment, survival analysis, Poland
JEL classification codes: J64, J68
Article: PDF

Piotr Strożek - The Knowledge Potential of the Polish Economy in World Bank Research

The article ranks a total of 145 economies by knowledge potential, a major factor behind international competitiveness today. The classification is based on the Knowledge Economy Index (KEI) and the Knowledge Index (KI) used by the World Bank in its Knowledge Assessment Methodology (KAM).
The author discusses the four main pillars of knowledge potential – the Economic Incentive and Institutional Regime; the Innovation System; Education and Human Resources; and Information and Communication Technology. He also conducts cluster analysis (a taxonomic method tool used as part of multidimensional comparative analysis) to determine the boundaries between individual groups of countries.
The use of knowledge potential in individual economies varies considerably. Poland, in comparison to highly developed countries, fares poorly and has a lot of catching up to do in this area. What’s even worse, Poland’s position in the overall classification has weakened over the past several years, the author says.

Keywords: knowledge-based economy, Knowledge Assessment Methodology (KAM), World Bank, analysis
JEL classification codes: C31, O57
Article: PDF

Grzegorz Bywalec - Dilemmas of Decentralization in the Contemporary World

The paper looks at the determinants and effects of decentralization policy pursued in many countries worldwide in the last several decades. The main focus is on the role of decentralization and its influence on poverty, corruption, local democracy, the competitiveness and innovativeness of local and regional economies, and the economic growth of countries.
The analysis is based on various empirical studies, theoretical studies, as well as the author’s experience in researching decentralization in India. The analysis shows that decentralization is not a universal method to ensure faster economic and socio-cultural development. Decentralization reforms may have different results in different countries, depending on how they are carried out and on a number of national, regional and local determinants (economic, political, social, demographic, cultural, and religious). There is no single, universal model of decentralization that could be implemented in every country at any time, the author says. The analysis shows that a low level of decentralization inhibits economic and social development. However, excessive decentralization—too broad or too deep – also appears to be irrational. There are situations when decentralization reforms bring more harm than good to the state, the author says. A specific model of decentralization, the procedures involved and the time of implementing it should always be carefully considered and adapted to the existing economic, social, political and cultural determinants in a country, the author concludes.

Keywords: decentralization, determinants, effects, local democracy, poverty, corruption, local and regional development, competitiveness, social development, economic growth
JEL classification codes: F63, H75, P43, R12
Article: PDF

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