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OECD Economic Surveys: Poland 2004

image of OECD Economic Surveys: Poland 2004

While Poland has undergone major change in the last decade, in this 2004 review of Poland’s economy, OECD finds that much needs to be done to facilitate convergence with the rest of Europe.  OECD proposes a comprehensive programme of reform covering an unsustainably large fiscal deficit, widespread unemployment, weak investment performance, and slow rural restructuring.  This edition’s special feature covers the labour market.

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Policies to Raise Employment

As the discussion in Chapter 1 indicated, improving the functioning of the labour market is a top economic and social priority for Poland. To increase employment levels policy will need to focus on reducing significantly the inactivity traps inherent in the Polish personal transfer system, while improving the efficiency and targeting of social transfers to ensure resources flow to those truly in need. Simultaneously, efforts must be extended to increase firms’ propensity to hire the out of work, by lowering the costs of low-skill labour, reducing associated administrative and regulatory costs and ...

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