The Relationship Between Wage Differentiation and Productivity in Polish Regions

Abstract

The article attempts to determine the optimal wage differentiation in Poland’s 16 regions from 1999 to 2015. In our study, optimality is a maximum level of total factor productivity. Wage differentiation was measured by the Gini coefficient. Two hypotheses were tested and confirmed: (1) the relationship between wage differentiation and TFP is described by the parabolic function with a maximum; (2) parabolic functions differ from each other, with different optimal dif-ferentiations