The Responsiveness of Employment to Changes in GDP and the Flexibility of Labor Market Institutions in Poland
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Publish date: 2015-08-31
Gospodarka Narodowa 2015;278(4):91–116
The article investigates the impact that the growing use of flexible work arrangements in Poland has on employment and on how it is responding to changes in GDP. The analysis covers the period from the first quarter of 1995 to the final quarter of 2012. It focuses on Impulse Response Functions (IRF) based on Vector Autoregressive models (VAR) for GDP and various employment measures. The results reveal some changes in the responsiveness of employment when aggregate demand changes, the authors say. However, the data does not confirm a link between these changes and an increased use of flexible work arrangements. Meanwhile, changes in responsiveness and the divergence of long-term trends between the main sectors are cyclical in nature, the authors argue. They conclude that the growing role of flexible work arrangements has an unclear impact on the relationship between employment and production in individual business sectors.