Wage- or Profit-Led Regime? The Case of Poland

Dominik Kaczmarski

Gospodarka Narodowa. The Polish Journal of Economics, 2024, issue 1, 5-18

Abstract: This study aims to investigate whether the Polish economy operates under a wage-led or profit-led economic regime. By analysing how changes in income distribution affect consumption, investment, and net exports, insights are gained into the nature of the economic regime, facilitating evidence-based policy formulation and fostering sustainable economic development in the country. The long-term impact of an increase in the profit share on economic growth is found to be significantly negative, giving rise to the conclusion that the Polish economy was in a wage-led regime from 2001 to 2022. The estimated total marginal effect of an increased profit share on output, including multiplier mechanisms, is –0.22.

Keywords: wage-led growth; Bhaduri-Marglin model; post-Keynesian economics; neo-Kaleckian model (search for similar items in EconPapers)
JEL-codes: B50 E11 E12 E20 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:sgh:gosnar:y:2024:i:1:p:5-18

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