Friday, 30 March 2012: 8:30 AM
In developed countries the rising percentage of households behaves rationally. It is represented by the life-cycle hypothesis of determining their incomes. The W models of the Polish economy assumed number of those households is small and this approach was neglected.
The paper presents the results of a research project aimed at empirical testing, whether the share of “rational” households in Poland was small and their majority was income-constrained. We calculated the expected life-cycle income using the information on the structure of employment by age and the sample of 1970-2008. The obtained results show that the share of “rational” households was below 10%.