Labor market transition in Poland

Abstract

The economic reforms and privatization in the wake of political changes in Poland after 1989 have led to rapid growth in the private sector. Although many new companies have been established, there has been a sharp increase in unemployment. Compared to the public sector, employees in the private sector tended to be less educated, younger and predominantly male. The private sector is also more dynamic, with higher rates of labor turnover, recruitment and separation, and average monthly wages were lower but, in recent years, have become close to those in the public sector. The Gini coefficient is higher in the private than in the public sector, showing that earnings are less equally distributed in this sector.