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Persistent unemployment and passive policies: Politics and institutional change in post-communist Poland

International Business at the Saïd Business School and Fellow of Management at Lady Margaret Hall, Oxford University, UK, dana.brown{at}sbs.ox.ac.uk

This article explains Poland's approach to unemployment in the postcommunist era as a case of path dependency, driven by institutionalized practices and cultures in key domestic policy-making organizations. The roots of Poland's passive and benefits-based unemployment policy are traced to the period immediately following regime change, which is defined as a critical juncture in social and economic policy-making. Policy choices in this period reflected the predominant reliance on market mechanisms to improve welfare. These choices have been reproduced over time despite widespread agreement that unemployment policies in Poland are failing both in terms of efficiency and effectiveness.

Key Words: change • employment law • labour markets • learning • organizational culture • trade unions

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