The stabilizing role of unemployment benefits in Poland

• Autorzy: Katarzyna Kalinowska
• Języki publikacji: EN

Abstrakty

EN

This study examines the impact of unemployment benefit system in stabilizing the economy in Poland in 2008-13. The goal is to answer the question: by how much do the automatic stabilizers in the Polish unemployment benefit system lower the volatility of aggregate demand? The effectiveness of unemployment benefits` automatic response to demand decline is measured using short-term elasticities of employment and government expenses for unemployment benefits with respect to output and marginal propensity to consume out of temporary change in income. To evaluate if automatic stabilizers have no delayed impact on the economy the IRF function in three variable VAR model is used. The paper concludes that unemployment benefits dampened consumption volatility by approximately 0,008% GDP. Impulse responses were used to simulate the dynamic response of disposable income and individual consumption to government's unemployment benefit payouts. Small stabilizing effectiveness of unemployment compensation can be explained by law rate of unemployed entitled to receive the compensation and also by the fact that insurance benefit payouts for unemployed people accounted only for 0,8% of total government expenses.(original abstract)

Słowa kluczowe

EN

Individual consumption; Business cycles; Economic stabilization

PL

Konsumpcja indywidualna; Cykl koniunkturalny; Stabilizacja gospodarcza

• Czasopismo: Central European Review of Economics & Finance
• Rocznik: 2016
• Numer: Vol. 12, No 2
• Strony: 21--40

Twórcy

autor

Katarzyna Kalinowska

• Kazimierz Pułaski University of Technology and Humanities in Radom, Poland

Bibliografia

• Baunsgaard, T. & Symansky S.A. (2009). Automatic Fiscal Stabilizers: How Can They Be Enhanced Without Increasing the Size of Government? IMF.
• Chimerine, L., Black T.S. & Coffey L. (1999). Unemployment Insurance as an Automatic Stabilizer: Evidence of Effectiveness Over Three Decades. Unemployment Insurance Occasional Paper 99(8).
• Darby, J. & Melitz, J. (2008). Social spending and automatic stabilizers in the OECD. Economic Policy, 23(56), 715-756.
• Dolls, M., Fuest, C. & Peichl, A. (2010). Automatic stabilizers and economic crisis: US vs. Europe. NBER Working Paper Series, 16275.
• Elmendorf, D.W. & Furman, J. (2008). If, When, How: A Primer on Fiscal Stimulus. Brookings Institution.
• Dullien, S. (2013). A euro-area wide unemployment insurance as an automatic stabilizer: Who benefits and who pays? Paper prepared for the European Commission (DG EMPL).
• Fatas, A. & Mihov, I. (October, 2001). Government size and automatic stabilizers: international and intranational evidence. Journal of International Economics, 55(1), 3-28.
• Friedman, M. (1957). A theory of Consumption Function, Princeton. Princeton University Press.
• Komuda, Ł. (2013). Urzędowy optymizm from http://rynekpracy.org/wiadomosc/949620.html (access: June 2014).
• Kwiatkowski, E. & Włodarczyk, P. (2013). Instytucje rynku pracy i polityka makroekonomiczna a zatrudnienie w krajach OECD w okresie globalnego kryzysu from http://www.pte.pl/kongres/referaty/Kwiatkowski Eugeniusz,Przemys% C5 aw W odarczyk/Kwiatkowski Eugeniusz, W odarczyk Przemys aw - INSTYTUCJE RYNKU PRACY I POLITYKA MAKROEKONOMICZNA A ZATRUDNIENIE W KRAJACH O.pdf (access: June 2014).
• Mackiewicz, M. & Krajewski, P. (2008). Skala i efektywność antycyklicznej polityki fiskalnej w kontekście wstąpienia Polski do strefy euro. Uniwersytet Łódzki.
• Marczuk, B. (2013). Mit umów śmieciowych from http://www.rp.pl/artykul/17,996012-Mit-umow-smieciowych.html, (access: June 2014).
• McKay, A. & Reis, R. (2013). The role of automatic stabilizers in the U.S. business cycle. NBER Working Paper, 19000.
• Modgiliani, F. & Brumberg, R. (1954). Utility Analysis and the Consumption Function: An Interpretation of the Cross-Section Data. In: Kurihara, K. (Ed.) Post-Keynesian Economics. New Brunswick, NJ: Rutgers U. Press, 388-436.
• Świech, M. (2011). Bezrobocie: kto i ile szuka pracy? from http://gazetapraca.pl/gazetapraca/1,90443,10864758,Bezrobocie__kto_i_ile_szuka_pracy_.html, (access: June 2014).
• Vroman, W. (2010). The Role of Unemployment Insurance As an Automatic Stabilizer During a Recession. Urban Institute and IMPAQ International.