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Individual Pay and Outside Options: Evidence from the Polish Labour Force Survey

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  • Patrick Walsh
  • Fiona Duffy

Abstract

Using Polish Labour Force Survey data, we examine whether competition in the labour market as induced individual pay to depend on outside options. Exploiting the lack of inter-regional job and worker flows we estimate the elasticity of individual pay, amongst a rich set of individual characteristics, to be approximately -0.1 for local unemployment and +0.1 for local job reallocation (composition shifts in employment over the business cycle). Variations in local labour market conditions explain approximately 50 per cent of the differences in expected individual earnings across regions, while differences in inherited human capital and occupation structures explain the rest.

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Bibliographic Info

Paper provided by Centre for Economic Reform and Transformation, Heriot Watt University in its series CERT Discussion Papers with number 0201.

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Date of creation: 2002
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Handle: RePEc:hwe:certdp:0201

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Keywords: Wage determination; unemployment; job reallocation and Polish regions;

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Cited by:
  1. Pierella Paci & Erwin R. Tiongson & Mateusz Walewski & Jacek Liwinski & Maria M. Stoilkova, 2007. "Internal Labor Mobility in Central Europe and the Baltic Region," World Bank Publications, The World Bank, number 6598, October.
  2. Myck, Michal & Nicinska, Anna & Morawski, Leszek, 2009. "Count Your Hours: Returns to Education in Poland," IZA Discussion Papers 4332, Institute for the Study of Labor (IZA).
  3. Anna Iara & Iulia Traistaru, 2004. "How Flexible Are Wages In EU Accession Countries?," Royal Economic Society Annual Conference 2004 128, Royal Economic Society.
  4. Blanchflower, David G. & Oswald, Andrew J., 2005. "The Wage Curve Reloaded," IZA Discussion Papers 1665, Institute for the Study of Labor (IZA).
  5. Tomasz Mickiewicz & Christopher Gerry & Kate Bishop, . "Privatisation, Corporate Control and Employment Growth: Evidence From A Panel of Large Polish Firms, 1996-2002," Working Papers 47 Key Words: employment,, CENTRE FOR THE STUDY OF ECONOMIC AND SOCIAL CHANGE IN EUROPE,School of Slavonic and East European Studies,University College London (SSEES,UCL).
  6. Ferragina, Anna Maria & Pastore, Francesco, 2005. "Mind the Gap: Unemployment in the New EU Regions," IZA Discussion Papers 1565, Institute for the Study of Labor (IZA).
  7. Vladimir Gligorov & Anna Iara & Michael Landesmann & Robert Stehrer & Hermine Vidovic, 2008. "Western Balkan Countries: Adjustment Capacity to External Shocks, with a Focus on Labour Markets," wiiw Research Reports 352, The Vienna Institute for International Economic Studies, wiiw.
  8. Berglöf, Erik & Bolton, Patrick, 2003. "The Great Divide and Beyond - Financial Architecture in Transition," CEPR Discussion Papers 3476, C.E.P.R. Discussion Papers.
  9. Baltagi, Badi H. & Rokicki, Bartlomiej, 2013. "The Polish Wage Curve: Micro Panel Data Analysis Based on the Polish Labor Force Survey," IZA Discussion Papers 7812, Institute for the Study of Labor (IZA).
  10. Tomasz Mickiewicz & Kate Bishop, 2003. "Wage Determination: Privatised, New Private And State Owned Companies. Empirical Evidence From Panel Data," William Davidson Institute Working Papers Series 584, William Davidson Institute at the University of Michigan.

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