Economic activity, saving, credit and income polarisation in Poland

Marek Kosny

Post-Communist Economies, 2013, vol. 25, issue 4, 512-528

Abstract: Polarisation of income distribution is an issue often analysed in the literature in the context of income inequality. One aspect of such research concerns the impact of polarisation on economic growth. Analyses in this field are usually focused on econometric modelling. However, for a broader assessment of the relationship between polarisation and economic growth more detailed analysis is needed -- taking into account areas of income concentration and possible consequences for the economic behaviour of individuals and households. The empirical results indicate the presence of polarisation in the distribution of income in 2000--10 in Poland and the dominance of the upper over the lower polarisation. While the lower polarisation is a clearly negative phenomenon, its impact is not directly considered in this study. The upper polarisation -- in the situation of Poland -- proved to involve positive changes in the economic behaviour of households in the area of saving, loans and labour supply.

Date: 2013
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DOI: 10.1080/14631377.2013.844931

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