The Distribution of Monopolistic Markups in the Polish Economy

Reevaluating Distributional Consequences of the Transition to Market Economy in Poland: New Results From Combined Household Survey and Tax Return Data

“…18 Growing capital share could be in turn driven by capital-augmenting technical change or by globalization through trade-induced shift toward capital-intensive sectors. Additionally, monopolistic markups adjusted for cyclical effects increased substantially in Poland over 2004-2009(Hagemejer and Popowski 2014 and the markups were significantly higher for manufacturing and non-exporting firms. Nolan et al (2018) suggest that higher markups and associated increased product market power could make income distribution more unequal through higher firm profits and higher incomes of the richest firm 16 The surge in business income over 2004-2008 can be also a result of shifting top labor earnings to business income (see Bukowski and Novokmet 2017 for further discussion).…”

Reevaluating Distributional Consequences of the Transition to Market Economy in Poland: New Results from Combined Household Survey and Tax Return Data

“…The growth of top income shares over 2003-2008 could also be a result of a longterm capital deepening and growing capital income share (declining labor share) in the Polish national income(Growiec 2012;Gradzewicz et al 2018).18 Growing capital share could be in turn driven by capital-augmenting technical change or by globalization through trade-induced shift toward capital-intensive sectors. Additionally, monopolistic markups adjusted for cyclical effects increased substantially in Poland over2004-2009(Hagemejer and Popowski 2014) and the markups were significantly higher for manufacturing and non-exporting firms Nolan et al (2018).…”