Contents of issue 11-12/2007
Jakub Growiec - The ‘Knife-Edge’ Conditions of Balanced Growth, abstract
Wanda Pełka - The Development of Poland’s Financial System and the Availability of Capital for Innovation, abstract
Marcin Kolasa, Paweł Strzelecki - Changes in Labor Input Quality in Poland, abstract
Sylwia Roszkowska, Aleksandra Rogut - Earnings and Human Capital Distribution in Poland, abstract
Maciej Jakubowski - The Effectiveness of Spending on Junior High Schools, abstract
, articleCONFRENCES - POLEMICS - REVIEWS
The Financial Condition of Local Government Institutions and the New Financial Perspective: The Case of Poland’s Podlasie Province - Paweł Piątkowski
Off-the-Books Tourist Services: Research Conclusions - Wanda Karpińska-Mizielińska, Tadeusz Smuga
Book Review: Amir Jan Fazlagić, Zarządzanie wiedzą
(Knowledge Management), Gnieźnieńska Wyższa Szkoła Humanistyczno-Menedżerska, Gniezno 2006, 177 pp. - reviewed by Wojciech Burzyński
Index of Publications in 2007
Jakub Growiec - The ‘Knife-Edge’ Conditions of Balanced Growth
In a previous paper, Growiec (2007) showed that conventional growth models do not satisfactorily explain exponential/geometric growth. A balanced growth path with strictly positive rates requires “knife-edge conditions,” Growiec says. This is because balanced growth paths are fragile and sensitive to the smallest disturbances in parameter values.
Growiec’s latest paper, which deals with the “knife-edge” conditions of balanced growth, looks at this theoretical approach in the context of other growth models found in literature on the subject. The author’s approach sheds new light on the ongoing debate on the sources of economic growth.Keywords
: long-run growth, balanced growth path, knife-edge conditionsArticle
Wanda Pełka - The Development of Poland’s Financial System and the Availability of Capital for Innovation
The study sets out to identify barriers to the financing of innovation resulting from the country’s overall level of development and the structure of Poland’s financial system. The author recommends action to remedy the system’s inefficiency in the area of financing business innovations.
The article describes the theoretical aspects of innovation financing and its characteristic features in Poland on the basis of an analysis of the size, structure and changes of the overall system.
On the basis of her analysis, Pełka concludes that financial barriers to the spread of innovation can only be eliminated by developing a market for “instruments typical of a knowledge-based economy.” Domestic savings need to be mobilized for the development of innovative businesses with the involvement of the public sector. It is also necessary to create a system of tax incentives and specialized capital market institutions, Pełka says, and some projects must be co-financed from public funds.
Poland’s financial system should evolve toward a model based on capital market institutions, with an increased share of private capital in the process of financing business innovation, Pełka concludes.Keywords
: innovation, financial system, knowledge-based economy, barriers to innovativenessArticle
Marcin Kolasa, Paweł Strzelecki - Changes in Labor Input Quality in Poland
The paper aims to quantify changes in the quality of Poland’s working population in 1993-2006. An important drawback of standard measures of labor input, such as the number of people employed or total hours worked, is that they treat the labor force as a homogenous entity. The starting point for calculating effective labor input in this paper is to loosen this assumption by disaggregating employment into groups within which the homogeneity assumption would be more valid. The subsequent aggregation explicitly takes into account the diversity of the marginal product of labor between the groups, using the average wage as a proxy. The empirical analysis is based on microeconomic data from a labor force survey. Education, age and sex were considered as important criteria in accounting for the heterogeneity of labor productivity. The analysis shows that labor input quality in Poland grew in 1993-2006 at an annual average rate of 0.9 percent, adding 0.6 percentage points to the average annual GDP growth rate. The main factor behind the improved quality of labor was an improvement in the educational structure of the working population.Keywords
: labor input, human capital, productivityArticle
Sylwia Roszkowska, Aleksandra Rogut - Earnings and Human Capital Distribution in Poland
The paper analyzes the relationship between the skills and earnings of Polish employees. The starting point for the discussion is an earnings equation proposed by Mincer (J. Mincer, Schooling, Experience and Earnings, 1974) as well as its modified form that takes into account a nonlinear relationship between the level of education and wages.
The analysis is designed to examine income disparities in Poland, in particular to show the differences among individual professional groups. The authors evaluate the influence of the level of education and professional experience of individuals on income disparities. Finally, they show differences in pay between men and women.
Econometric analyses carried out by the authors confirm that education and professional experience have a statistically significant influence on employees’ pay. The general rule is that employees with a higher education earn more. Moreover, differences in earnings in individual professional groups grow with the level of education. Another significant factor is an employee’s professional experience. People with more than 20 years of work experience earn 5-8 percent above the average, while the earnings of individuals who have less than a year of work experience are around 30 percent below the average.
Statistical analyses made in the study point to a linear relationship between the level of education and pay and a nonlinear relationship between professional experience and earnings. The analyses also confirm the existence of major differences in pay between men and women. Women’s earnings were lower in both analyzed periods. Moreover, the influence of individual factors on the level of wages is different for men and women.Keywords
: earnings distribution, human capital, linear/nonlinear relationship, Mincer earnings equationArticle
Maciej Jakubowski - The Effectiveness of Spending on Junior High Schools
The paper offers an empirical analysis of the effectiveness of spending on junior high schools in Poland on the basis of students’ performance during external exams in 2002-2006 and Central Statistical Office (GUS) data on local government budgets. The study makes use of multilevel models, including an “educational value-added model.”
Even though the methods used by the author do not make it possible to determine the exact cause-and-effect relationships involved, they are more reliable than methods used in most previous studies of this kind in Poland. The results obtained by Jakubowski suggest that, under the existing institutional arrangements, the total expenditure of Poland’s central and local governments per student has no influence on the average increase in knowledge among junior high school students. Greater spending neither upgrades the quality of education nor helps equalize educational opportunities, Jakubowski concludes. These findings carry a clear message for decision makers and local government officials responsible for educational policy showing that their policies do not necessarily contribute to an increase in the country’s human capital stock. Further investment in the national education system requires a rethinking of the effectiveness of individual measures, Jakubowski says. At the same time, he adds that further research is needed to look for more effective educational programs to improve the quality of education in Poland.Keywords
: human capital, education, multilevel modelsArticle