Notwithstanding a very strong economic performance over the past decade or so, Poland’s per capita
income is substantially lower in comparison with the United States and per capita income growth will be
sharply slowing down over the coming decades under the scenario of gradual policy changes mostly
because of population ageing. Bold structural reforms are needed to boost labour productivity and labour
resource utilisation. This paper argues that in order to increase labour resource utilisation, policy action
should focus on raising the effective retirement age, encourage childbearing and lower high unemployment
rates for young people and the unskilled via increased and more efficient active labour market policies.
Labour productivity could be boosted via rendering the tax system more growth friendly, reducing product
market regulation (including heavy government involvement in the economy, high administrative costs of
running and starting businesses and increasing competition in uncompetitive segments of the economy).
Investing in human capital and encouraging innovation are also essential for long-term productivity
growth.
