72nd International Atlantic Economic Conference

October 20 - 23, 2011 | Washington, USA

Changes in the relative situation of the poor in the growing economy: The case of Poland

Saturday, 22 October 2011: 10:40 AM
Marek Kosny, Ph.D. , Institute of Applied Mathematics, Wroclaw University of Economics, Wroclaw, Poland
Changes in the relative situation of the poor in the growing economy – case of Poland

Abstract

Permanent positive growth of the real value of GDP over last twenty years in Poland resulted in significant improvement in the economic situation of households. The distribution of this increase in wealth was not, however, homogenous. And the pattern of income growth proved to be a crucial factor, determining the situation of the poor. Observed shift from anti-poor to pro-poor pattern of growth influenced both extent of poverty and direction of change in average income of the poor.

In this context, the aim of the paper is to investigate, to what extent changes (related to anti-poor and pro-poor pattern of economic growth) in this situation of the poor, depend on the characteristics of their households. Special attention will be paid to the main source of income. In the analysis four main groups of households will be distinguished: beneficiaries of social aid, self-employed and workers: blue- and white collars.

The analysis will base on relative concept of changes in income distribution. Besides commonly known income growth curves, diagrams related to Zenga inequality index will be applied.

JEL Codes: J31, I32, E24

Keywords: economic growth, pro-poor growth, poverty, income distribution