Wage and Investment Behaviour in Transition: Evidence from a Polish Panel Data Set
AbstractThis paper looks at the behaviour of large industrial firms in Poland in 1988–94. Using a longitudinal enterprise-level data set, we are able to test systematically various hypotheses concerning firms’ reactions to the change in their environment. The results confirm a structural break after the introduction of the package of reforms in 1990. Labour market conditions and product market competition exert important downward pressure on wages. After 1993, however, this initially strong response is weakened. Comparison of wage-setting behaviour across different types of firms confirms important differences in wage negotiation. In state-owned enterprises (SOEs) insiders capture an important part of productivity increases, while in privatized firms there is no positive relationship between firms’ ability to pay and wage increases. Privatization appears important for the strategic dimension of enterprise restructuring. Privatized firms invest more and have greater capacity to ensure higher output growth.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1726.
Date of creation: Oct 1997
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Other versions of this item:
- Grosfeld, I. & Nivet, J. F., 1997. "Wage and Investment Behavior in Transition: Evidence from a Polish Panel Data Set," DELTA Working Papers 97-19, DELTA (Ecole normale supérieure).
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- P21 - Economic Systems - - Socialist Systems and Transition Economies - - - Planning, Coordination, and Reform
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- Carlin, Wendy & Fries, Steven & Schaffer, Mark E & Seabright, Paul, 2001.
"Competition and Enterprise Performance in Transition Economies: Evidence from a Cross-country Survey,"
CEPR Discussion Papers
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- Wendy Carlin & Steven Fries & Mark Schaffer & Paul Seabright, 2001. "Competition and enterprise performance in transition economies: evidence from a cross-country survey," Working Papers 63, European Bank for Reconstruction and Development, Office of the Chief Economist.
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- Grosfeld, Irena & Nivet, Jean-Francois, 1999. "Insider power and wage setting in transition: Evidence from a panel of large Polish firms, 1988-1994," European Economic Review, Elsevier, vol. 43(4-6), pages 1137-1147, April.
- Barbara Blaszczyk & Iraj Hashi & Alexander Radygin & Richard Woodward, 2003. "Corporate Governance and Ownership Structure in the Transition: The Current State of Knowledge and Where to Go from Here," CASE Network Studies and Analyses 0264, CASE-Center for Social and Economic Research.
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- Rumen Lazarov, 2001. "The Innovative Activity of the Companies (After the Model of Pleven, Lovech, Veliko Tarnovo and Gabrovo Districts)," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 132-158.
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