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The Evolution of the Foreign-Ownership Wage Premium in Poland

Author

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  • Vera A Adamchik
  • Piotr Sedlak

Abstract

The study examines the foreign-domestic wage differential in Poland during 2014-2017. The individual-level data come from ongoing surveys conducted by a major Polish HR consulting firm. The empirical analysis shows that during this period, there was a substantial (albeit decreasing) raw wage advantage for workers whom foreign-owned firms employed. This differential reduced significantly after controlling for personal, work, and workplace characteristics. Foreign firm employees at the lower end of the earnings distribution faced a smaller wage gap than those at the upper end; the wage gap showed a noticeable decline at all the percentiles over the years. Wage gap decompositions reveal that a predominant portion of the wage differential was due to differences in observed characteristics; nevertheless, a substantial portion of the wage gap remained unexplained.

Suggested Citation

  • Vera A Adamchik & Piotr Sedlak, 2022. "The Evolution of the Foreign-Ownership Wage Premium in Poland," Journal Transition Studies Review, Transition Academia Press, vol. 29(2), pages 37-56.
    • Handle: RePEc:ase:jtsrta:v:29:y:2022:i:2:p:37-56:id:550
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