a The World Bank. Europe and Central Asia Region. Poverty Reduction and Economic Management Unit. b The World Bank. Europe and Central Asia Region. Poverty Reduction and Economic Management Unit. c The World Bank. Africa Region. Poverty Reduction and Econ

Abstract * This paper attempts to analyze the linkages between macroeconomic policies and economic growth variables, their movement over time, and their impact on poverty in the case of Poland. Poland, a middle-income country, is of particular interest because its data sources allow for a relatively detailed analysis of such developments, but also because of macroeconomic environment and the economic growth variables show a relatively sizable degree of variance. In addition, Poland has struggled in the last few years to reduce poverty while still experiencing positive economic growth. The paper will show that in Poland poverty-reducing growth depends heavily on the ability of the economy to generate jobs. During the early years of transition, net job growth was positive, but after the Russian crisis of 1998, productivity gains were accomplished mostly through labor shedding, consequently increasing poverty in Poland. In addition, the paper identifies how fiscal and social protection policies impact Poland’s income distribution and poverty trends