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Croatian Wage Inequality and Wage Differentials, 1970-2008: Measurement and Determinants

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Author Info

  • Ivo Bicanic

    ()
    (Department of Economics,University of Zagreb)

  • Saul D. Hoffman

    ()
    (Department of Economics, University of Delaware)

  • Oriana Vukoja

    ()
    (Department of Economics,University of Zagreb)

Abstract

We use newly-available data on income by educational and vocational attainment and grouped income-interval data to examine wage inequality and wage differentials in Croatia between 1970 and 2008. This is a time period during which Croatia experienced enormous institutional and structural change, including the fall of socialism, hyperinflation, the Homeland war and the creation of sovereign Croatia. We construct both Gini and Theil measures of inequality, using grouped data. We find a general compression of earnings differences by educational and vocational attainment, but with a slight increase in the capitalist period post-1990. The income interval data shows a clearer pattern of a secular increase in inequality that is sharper in the capitalist period. We also examine within-industry inequality to see whether industries that experienced stronger structural changes also experienced a greater increase in inequality. Our evidence on this is mixed.

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File URL: http://graduate.lerner.udel.edu/sites/default/files/ECON/PDFs/RePEc/dlw/WorkingPapers/2010/UDWP2010-03.pdf
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Bibliographic Info

Paper provided by University of Delaware, Department of Economics in its series Working Papers with number 10-03.

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Length: 38 pages
Date of creation: 2010
Date of revision:
Handle: RePEc:dlw:wpaper:10-03.

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Web page: http://www.lerner.udel.edu/departments/economics/department-economics/
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Related research

Keywords: Croatia; Transition Economy Labor Markets; Inequality; Gini coefficient; Theil Index;

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  1. Martin Wagner & Jaroslava Hlouskova, 2004. "CEEC Growth Projections: Certainly Necessary and Necessarily Uncertain," Diskussionsschriften dp0403, Universitaet Bern, Departement Volkswirtschaft.
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Cited by:
  1. Cok, Mitja & Urban, Ivica & Verbič, Miroslav, 2012. "Income redistribution through taxes and social benefits: the case of Slovenia and Croatia," MPRA Paper 38918, University Library of Munich, Germany.

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