Wage Determination under Communism and in Transition: Evidence from Central Europe
AbstractUsing large firm-level data sets from the Czech Republic, Slovakia, Poland and Hungary, we show that the wage behavior of firms changed considerably as these economies launched their transitions to a market system. We find evidence of worker sharing in their enterprise rents and losses at the end of the communist period in some economies and within a year after the launching of the transition, we find rent sharing in all of them. Using the Czech and Slovak data we show that the state-owned enterprises (SOEs) that existed under communism and survived allow for less worker rent-sharing than other firms. We also test for the presence of a wage curve and with the exception of Slovakia we do not find a significant association between local unemployment and wages. Finally, we do not find significant effects of firm ownership on wages.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1276.
Length: 22 pages
Date of creation: Sep 2004
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Other versions of this item:
- Swati Basu, & Saul Estrin & Jan Svejnar, 2004. "Wage Determination Under Communism and In Transition: Evidence from Central Europe," William Davidson Institute Working Papers Series, William Davidson Institute at the University of Michigan 2004-717, William Davidson Institute at the University of Michigan.
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-09-05 (All new papers)
- NEP-EEC-2004-09-05 (European Economics)
- NEP-LAB-2004-09-05 (Labour Economics)
- NEP-TRA-2004-09-05 (Transition Economics)
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